AI for SMEs: Driving Productivity and Growth in 2026

Artificial intelligence is often framed as a technological race between global corporations and well-funded startups. But the framing misses something important. For the first time in decades, the same powerful capabilities that large enterprises rely on are becoming accessible to small and medium businesses. Tools that once required massive infrastructure and specialised teams can now be deployed by organisations of almost any size. This shift is quietly reshaping the competitive landscape.

Few people have had a front-row seat to the evolution of India's technology ecosystem quite like Anand Deshpande. As the Founder and Chairman of Persistent Systems, he has spent decades helping global enterprises navigate major technology shifts, from early internet computing to cloud transformation and now artificial intelligence. Under his leadership, Persistent grew from a startup into a globally recognised digital engineering company serving some of the world’s most demanding technology-driven organisations.

Having worked at the intersection of deep technology innovation, enterprise software, and global digital transformation, he brings a rare perspective on how emerging technologies move from experimentation to mainstream adoption. His insights are grounded not only in theory but in decades of building technology platforms, scaling engineering teams, and watching multiple waves of innovation reshape industries.

In the TTBS Do Big Podcast, he shares why artificial intelligence could represent one of the most profound technology shifts businesses have experienced in decades. As he explains, AI is not just another technological upgrade. It is becoming one of the most powerful levelling forces in modern business.

“AI is as significant as the internet and mobile. In a few years, everyone will be using it.”

For SMEs willing to experiment and adapt, AI may become the tool that unlocks entirely new levels of productivity and opportunity.

Why Traditional Business Intelligence Is No Longer Enough

Many organisations still rely on conventional data signals to guide decision making. But in today’s dynamic environment, those signals often fall short.

Take lending, for instance. Traditional credit models rely heavily on historical financial records. But in a fast-growing economy, millions of individuals and small businesses have limited credit histories. That makes decision making both difficult and risky.

Anand Deshpande describes how AI is changing this dynamic by analysing multiple data sources in real time and identifying patterns that traditional systems simply cannot detect. The result is dramatically faster decision making.

“AI is going to improve productivity for every individual at every level in the company.”

What makes this powerful is not just speed. It is the ability to make better predictions about future outcomes rather than relying purely on historical data. This is where AI begins to transform entire business models.

The Untapped Power of Unstructured Data

One of the most overlooked capabilities of AI lies in its ability to interpret unstructured data. Images. Conversations. Documents. Videos. These are data sources that traditional analytics systems struggle to process. Yet they contain valuable signals about behaviour, intent, and risk.

AI systems can now analyse these inputs and convert them into structured insights. For example, analysing images of neighbourhoods or buildings can reveal signals about economic conditions or lifestyle patterns. These insights can then feed into business decision models. In other words, AI is not just generating content. It is uncovering patterns that were previously invisible.

What This Means for Business Leaders

Many organisations underestimate the value of the data they already possess. Images, conversations, documents, and operational records often contain signals that traditional analytics tools cannot interpret. AI changes this equation. Companies that begin analysing unstructured data today will uncover insights that competitors may still be missing.

Generative AI Is Changing Customer Interaction

Another major shift is happening in how organisations interact with customers. Generative AI systems can now conduct natural conversations, respond across multiple languages, and interact with customers in real time. This capability is particularly powerful in industries with high customer interaction volumes.

Instead of relying exclusively on human agents, organisations can deploy conversational AI that handles routine queries while allowing human teams to focus on more complex situations. The outcome is not just efficiency. It is scalability. Businesses can serve more customers without compromising response times or availability.

Why SMEs Should Start Now

Despite these advancements, many SMEs still view AI as expensive and difficult to implement. But this perception is rapidly becoming outdated. Today’s AI ecosystem includes accessible tools, cloud platforms, and integrated productivity features that allow businesses to start experimenting with AI almost immediately.

The most effective approach is often the simplest. Start with the tasks that consume the most time but create the least strategic value. Email summaries. Marketing content creation. Routine customer queries. Document analysis. These small applications often deliver immediate productivity gains.

“Start using the foundational models that are already available.”

The organisations that learn fastest will ultimately gain the greatest advantage.

The Often-Overlooked Foundation: Data

While AI tools are becoming increasingly accessible, their effectiveness ultimately depends on one critical factor: data quality. AI models rely on accurate, complete, and well organised data. Without that foundation, even the most advanced algorithms will produce unreliable insights.

Businesses that invest in cleaning, organising, and governing their data today will unlock far greater value from AI tomorrow. In many ways, AI adoption is less about technology and more about data maturity.

The Bigger Picture

Every major technological revolution follows a familiar pattern. At first, there is excitement and uncertainty. Predictions swing between utopian optimism and catastrophic fear. But over time, the technology becomes embedded in everyday business operations. Electricity did this. The internet did this. Cloud computing did this. AI is now following the same path.

And for SMEs in particular, the opportunity is enormous. AI is lowering the cost of expertise, reducing operational friction, and enabling smaller businesses to compete in ways that were previously impossible. The businesses that embrace this shift early will not just improve efficiency. They will redefine what is possible.

Key Takeaways

• AI is enabling faster, smarter decision making by analysing complex and previously unusable data sources.
• SMEs can start benefiting from AI through small productivity applications without heavy investments.
• Clean, well-structured data remains the most critical foundation for successful AI adoption.

Podcast Insight

This blog draws insights from the TTBS Do Big Podcast conversation with Anand Deshpande, Founder and Chairman of Persistent Systems.

Watch the complete episodes here:

Watch Part 2 of the episode: