The Rise of Gen AI in India: How Cloud Tech is Empowering MSMEs

Generative AI has changed how the cloud sector operates in the swiftly changing digital age. As data increasingly plays a crucial role in defining the future of businesses, organisations are shifting their storage and associated infrastructure, such as hyper-converged infrastructure, to address a wide array of IT goals.

Indian SMBs and MSMEs have been essential in upgrading their infrastructure to fulfil transformation requirements and prepare for success in the digital age. A study conducted by Salesforce revealed that 78% of these SMBs and MSMEs utilise Generative AI in multiple capacities, including service chatbots, content generation, and enhancing marketing campaigns.

Cloud Computing: From Nonessential to Becoming a Necessity

The transition to cloud services for Indian SMBs experienced an increase during the pandemic. A NASSCOM report reveals that more than 70% of Indian SMBs started to invest in cloud technologies after 2020, recognising its influence on cost, flexibility, and customer experience.

Here’s the reason cloud adoption is now essential:

• Budget-Friendly: No requirement for costly on-site infrastructure.

• Adaptable & Expandable: Pay-as-you-use plans enable companies to grow their operations without significant capital expenditure.

• Remote Access: Crucial for hybrid work setups and instantaneous customer support.

• Security & Compliance: Leading cloud providers currently ensure adherence to Indian data localisation standards and industry-specific regulations.

In addition to these advantages, cloud platforms are rapidly emerging as the springboards for AI advancement, delivering advanced technologies to the foundational level.

Generative AI:

Generative AI—able to create human-like text, images, designs, and even code—is no longer merely a trend in Silicon Valley. Inspiring creativity, tools such as ChatGPT, Midjourney, and Google Gemini are increasingly being incorporated into cloud services that are available to SMBs in India. A 2024 report from IDC states that 37% of mid-sized Indian companies are currently testing generative AI in fields such as customer service, marketing, and internal automation.

Here’s what it means for MSMEs:

• Immediate Content Generation: Ranging from product descriptions to catalogues, generative AI is capable of automating marketing activities.

• 24/7 AI Chatbots: AI helpers educated in local languages can address customer enquiries at any time.

• Swift Product Prototyping: Designers are able to utilise AI tools to create visual models, reducing design phases by fifty per cent.

• Intelligent Business Choices: AI tools based in the cloud can currently evaluate business information and offer immediate insights without requiring an entire data science team.

What is the main factor contributing to this accessibility? Cloud-based AI APIs and services from companies such as AWS, Microsoft Azure, and Google Cloud—all of which are expanding their operations in India.

Real-World Influence: Indian SMBs Becoming More Intelligent

Consider, for example, a textile exporter in Surat who employs cloud-based inventory solutions along with generative AI to automatically create product catalogues in English, Hindi, and Gujarati. Alternatively, a logistics startup based in Lucknow employs AI chatbots to interact with truck drivers in local dialects and enhance routing via real-time data analysis. These instances are not unique—they indicate a larger change.

Obstacles Remain— But they are surmountable

Despite the positive outlook, there are certain real situations to address:

Digital literacy disparities continue to be present, particularly in Tier II and III cities. The precision of language and cultural subtleties in AI-created content is still not ideal. Financial worries continue for early-stage MSMEs, even though freemium models assist. Understanding data privacy and compliance is crucial—especially with the emergence of new Indian laws like the Digital Personal Data Protection Act (DPDP 2023). A cooperative strategy is crucial: engaging the government (through Digital India initiatives), cloud service providers (by simplifying onboarding procedures), and industry groups like NASSCOM and FICCI to create training, awareness, and funding pathways for AI deployment. The Path Forward: Digital India, Fueled by Cloud and AI.

The intersection of cloud computing and generative AI is more than a mere industry trend—it represents a technological turning point that can close the enduring innovation gap separating large enterprises from small businesses in India. With cloud-driven AI now accessible, even an individual entrepreneur in Coimbatore or a budding startup in Nagpur can compete worldwide—utilizing intelligent automation, immediate insights, and innovative features that were previously exclusive to large enterprises. In this revolution, MSMEs are not merely adjusting—they are reshaping the principles of digital transformation.

To fully take advantage of this opportunity, they need more than just tool access—they require a strong support system that includes training programs, affordable infrastructure, local language resources, and policy-level encouragement. With strategic foresight, collaborative ecosystems, and inclusive innovation, India's 63 million MSMEs can swiftly progress into a digital-first era—marked by resilience, competitiveness, and worldwide importance.

Written By - Piyush Somani – Promoter, MD & Chairman, ESDS Software Solution

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