The narrative of artificial intelligence (AI) in India often conjures images of massive tech hubs and sprawling enterprises. Yet a more subtle, and arguably more consequential, story is unfolding across the nation’s small and medium‑sized business ecosystem. From Bengaluru startups building region-specific language models to Delhi NCR firms securing digital operations, AI is quietly enabling agile growth, productivity gains, and smarter competition.
Oliver Jay, Managing Director for International Strategy at OpenAI, observed at CNBC-TV18’s Global Leadership Summit 2025, “When we think about India, we fundamentally believe that if you build for India, you can build for the world. India is really leading the adoption of the next generation. When you think about the population mix between 18 and 24 years old, that is a booming sector in India.” This highlights not just the speed of AI adoption in the country but also the growing influence of India’s young, digitally native population in shaping AI solutions.
According to the latest 6th edition of the Small & Medium Business Trends report by Salesforce, 78 % of Indian SMBs are either using or experimenting with AI, and 93 % of those report an increase in revenue. This suggests that AI has ceased to be solely the domain of large corporations, it is increasingly a tool for the nimble, the specialised, and the locally rooted.
Consider Sarvam AI, a Bengaluru‑based startup founded in 2023. Unlike global AI firms focused on universal markets, Sarvam AI is developing Indian‑language large language models (LLMs) tailored to the nuances of the nation’s linguistic diversity. Its models support ten Indian languages, including Hindi, Tamil, Telugu, and Kannada, with voice-first interfaces for local enterprise and consumer applications. With $41 million in Series A funding, Sarvam AI is collaborating with the Indian government under the IndiaAI Mission to build the nation’s first sovereign foundational LLM. For smaller businesses, tools like Sarvam’s AI models offer the potential to automate customer support, localise content, and develop chatbots or voice interfaces that understand regional languages, all without the prohibitive costs traditionally associated with AI development.
While Sarvam AI focuses on linguistic AI, Clueso, founded in 2021 with operations in both Bangalore and the United States, demonstrates how Indian startups are applying AI to niche enterprise needs. Clueso’s AI-powered platform generates video documentation and workflow content for software teams, simplifying tasks that were traditionally time-intensive. Even small product companies can maintain high-quality internal and client-facing documentation without straining resources. Though Clueso operates globally, it reflects the ingenuity of Indian startups in finding specialized AI applications that address real business problems beyond the scale of big tech.
A distinctly local example from Delhi NCR is Secure Blink, a cybersecurity startup that applies AI to web applications and APIs. Its flagship product, Threatspy, leverages AI to detect, prioritise, and remediate vulnerabilities automatically. For smaller companies, AI-driven platforms like Threatspy are crucial: they provide enterprise-grade security without large in-house teams, enabling SMEs to safeguard digital operations cost-effectively. Secure Blink has gained recognition through global acceleration programs and seed funding from international investors, highlighting the market readiness of AI solutions originating from smaller Indian enterprises.
Artificial intelligence is gradually becoming part of the daily operations of smaller Indian enterprises. Sarvam AI enables enterprises to interact with customers in their native tongues. Clueso eases workflow pressures for software teams, and Secure Blink brings AI-powered cybersecurity within reach of SMEs.
Yet, this progress is uneven. Trust, technical capacity, and data readiness remain significant hurdles. Many smaller firms fear falling behind in a constantly churning AI ecosystem and keeping pace with evolving technologies continues to challenge resource-constrained businesses.
For policymakers and ecosystem builders, the implication is clear, enabling AI adoption goes beyond providing access to algorithms. Attention must be paid to data quality, vernacular interfaces, end-to-end solutions, and capacity building. The successes of Sarvam AI, Clueso, and Secure Blink illustrate a pragmatic evolution of AI, one rooted in solving real, everyday business problems rather than speculative hype.
In essence, India’s AI story is not written solely in global research labs. It is unfolding in Bengaluru startups developing region-specific language models, in hybrid teams streamlining product documentation across continents, and in Delhi NCR firms fortifying SMEs against cyber vulnerabilities. The quiet but determined uptake of AI among smaller enterprises signals a more inclusive and resilient digital economy, one that thrives not merely on the shoulders of giants, but through the ingenuity and operational acumen of everyday businesses.
References:
India's AI adoption growing at record pace, momentum tripled on year: OpenAI's Oliver Jay
Five-month-old Indian AI startup Sarvam scores $41M funding | TechCrunch