At a recent seminar on digital technologies and AI adoption hosted by the Confederation of Indian Industry Kerala chapter, business leaders and tech innovators gathered in Kochi to highlight how artificial intelligence (AI) could become a transformative force for the state’s micro, small and medium enterprises (MSMEs). The discussion formed part of the Application & Digi-Tech Series 2026, with a seminar titled “AI for MSMEs: Driving Productivity, Profitability and Growth.”
Speakers at the event reframed AI not just as an automation tool but as a strategic enabler that can shift MSMEs from traditional operations to high-value, data-driven enterprises. Dr Saji Gopinath, Vice-Chancellor of the Kerala University of Digital Sciences, Innovation and Technology, described AI as a “general-purpose technology” and a “great equaliser” — one capable of levelling the playing field between smaller firms and larger corporations. He urged entrepreneurs to rethink business models holistically rather than using AI only to streamline existing tasks.
The seminar emphasised that while AI can automate repetitive work — freeing human staff to focus on innovation, strategic planning and customer engagement — the biggest gains will come through reimagining workflows and embracing new business models built around digital insight and efficiency.
Several industry voices stressed that adoption of AI isn’t optional for MSMEs aiming to remain competitive in fast-changing markets: businesses that effectively harness AI tools will outpace those that cling only to legacy methods. Joseph M. Kallivayalil, Chairman of CII Kerala, underscored the need for immediate adoption, while VKC Razak, Immediate Past Chairman of CII Kerala, noted that although AI won’t replace humans, enterprises that make good use of AI will supplant those that don’t.
The backdrop to this seminar is Kerala’s accelerating interest in digital transformation across industries — including recent initiatives to build AI infrastructure and skills training frameworks to support broader economic growth. Experts at the event pointed out that, by transitioning toward data-driven, high-performance operations, Kerala’s MSMEs could help fuel the next wave of industrial expansion and access not just local but global markets.
