AI Empowers Indian SMBs in Advertising & Growth

Artificial intelligence is fundamentally reshaping the advertising landscape for Indian small and medium businesses (SMBs), opening up sophisticated channels like streaming TV that were once exclusive to larger brands. A recent Amazon Ads study reveals that a staggering 87% of surveyed Indian SMBs believe AI has made these previously inaccessible advertising avenues attainable.

Key Growth Metrics Driven by AI

• 75% of these businesses credit AI-enabled advertising for their overall business growth.
• 68% report a significant increase in creativity across their marketing endeavors, thanks to AI tools.

Kapil Sharma, Director of Amazon Ads India, noted the rapid adoption of AI tools among Amazon advertisers in India, demonstrating a 77% year-over-year growth. This surge in utilization translated into Indian SMBs generating 62% more ad creatives in Q1 2026 compared to the previous year, underscoring AI’s immediate tangible impact.

Overcoming Traditional Ad Barriers

Historically, streaming TV advertising presented formidable barriers for many SMBs, limiting their reach to mass audiences. These challenges included prohibitive costs and complex planning requirements.

• High costs were a barrier for 48% of SMBs.
• Minimum spend requirements impacted 39%.
• Planning complexity deterred 36% of potential advertisers.

Today, AI is dismantling these hurdles. Among SMBs interested in streaming TV, 62% find it effective for reaching new audiences, and 59% report it helps increase brand awareness, indicating a successful transition to broader market engagement.

AI Fuels Cross-Border Growth

Beyond domestic advertising, AI tools are also proving instrumental in facilitating international trade for Indian sellers, enabling them to expand their global footprint. Cross-border campaigns, once considered out of reach, are now more accessible.

• 56% of respondents who previously found cross-border campaigns inaccessible now find them more approachable due to AI-powered tools.
• 59% credit AI for directly supporting their expansion into new countries, showcasing its role in global market entry.

The Human Element Remains Crucial

Despite the powerful capabilities of AI, the study emphasizes that human oversight remains a critical component in decision-making processes for Indian SMBs. Fully automated systems are not the norm.

• Only a mere 2% of SMBs reported using fully automated decision-making without any human review.
• For 40% of respondents, business owners continue to be the ultimate decision-makers.
• Another 32% rely on AI tools but integrate human review, highlighting a hybrid approach to leveraging technology.

This strategic integration of AI with human intelligence empowers SMBs to not only overcome historical advertising limitations but also to craft their unique growth narratives in an increasingly competitive market, as noted by Amazon Ads India.