SMBs in Mumbai are rapidly scaling their AI capabilities, reinforcing the city’s position as a leading hub for innovation and digital-first growth

Mumbai : Mumbai’s small and medium businesses (SMBs) are entering their most confident decade yet. New LinkedIn research finds that nearly 9 in 10 SMBs in Mumbai (89%) are already investing in or planning AI adoption, indicating how technology has moved from experiment to infrastructure. At the same time 87% of SMB decision-makers expect business growth in the next 12 months – signalling a sector that’s not just hopeful but rebuilding around smarter systems, skilled talent, and trusted digital platforms.

For Mumbai’s SMBs, evolution is survival, not optional

Behind their confidence lies urgency. AI is no longer a buzzword, but the new baseline for growth. The research shows that 59% of the SMBs in Mumbai cite operational efficiency as key to protecting margins, 57% view AI and automation as essential to stay competitive, and 51% say digital transformation is critical to survival.

Kumaresh Pattabiraman, Country Manager, LinkedIn India said, “Mumbai’s SMBs are redefining business growth standards by working smarter and investing in AI more strategically. Entrepreneurs are challenging how business is built, using AI to drive efficiency, skills-first hiring to build capability, and trusted digital ecosystems to expand their market footprint. At LinkedIn, we are committed to empower this next phase of growth by equipping every entrepreneur with the right network, the right clients, and the right talent, all in one place, so they can scale with confidence in today’s increasingly digital-first economy.”

AI becomes the new operating system for growth

AI has become the engine behind how Mumbai’s SMBs hire, market and grow. Nearly all surveyed businesses say they use or plan to use AI to automate workflows (88%), strengthen analytics and business intelligence (88%), and employee upskilling (87%).

Hiring models are being rebuilt, valuing skills over degrees. More than half of the SMBs in the city now value leadership and team management (58%), problem solving and critical thinking (55%), and digital literacy and AI fluency (53%) over traditional qualifications. To find this talent, 53% already use AI hiring tools, citing improving candidate quality and higher engagement.

Marketing and sales, too, are becoming intelligence-driven in Mumbai. 69% of SMBs are already using AI-powered marketing tools, with 94% of them allocating up to half their budgets for this. 66% now rely on AI in sales for sharper targeting and automated follow-ups, allowing them to operate with the sophistication of larger enterprises.

Rahul Karthikeyan, Chief Marketing Officer, Scaler said, “Scaler’s recent campaigns have seen strong performance through precise audience targeting and data-driven optimisation. Sponsored Content, especially vertical formats, delivered a 20% higher lead-to-payment conversion than static formats on other channels. In August alone, LinkedIn generated about 70–80 new payments with a return on spend (RoS) of 2.2. We plan to further scale this high-impact channel while maintaining cost-per-sale efficiency.”

Trust is the new competitive advantage

Even as they adopt AI at speed, SMBs are discerning about where they place their trust. 96% say platform credibility matters more than cost or convenience. Their top considerations are data security (83%), seamless integration (78%), and clarity on ROI (76%). Together, these shifts signal the rise of a smarter, more resilient SMB ecosystem – one that is not just adapting to the AI era but actively shaping it.