Only 15% MSMEs adopt AI in Manufacturing
Report on AI in Manufacturing by BCIC and RV College of Engineering released at the summit
The flagship summit of Bangalore Chamber of Industry and Commerce (BCIC), AI for Manufacturing Transformation “Transforming Industries with AI to Achieve unmatched Productivity and Efficiency” & 1st Edition of Manufacturing Excellence Awards 2025 was held in the city today. Speakers at the summit emphasized that Artificial Intelligence (AI) is underutilized in the SME and MSME manufacturing sectors in India and should be perceived as a transformative opportunity rather than a disruptive challenge They underlined the importance for such enterprises to harness the potential of AI to optimize processes, improve decision-making, and scale sustainably in an increasingly digital economy. The summit also witnessed the release of a report on AI in Manufacturing by BCIC and RV College of Engineering.
Delivering the Chief Guest’s address, Chandrashekar Bharathi, Managing Director, AceMicromatic MIT said, “Artificial Intelligence is rapidly changing and should be a DNA approach for any manufacturing company as it re-purposes people to do more challenging jobs, empowering them to unlock new possibilities. From manufacturing floors to leadership decisions, AI-driven platforms must be used to harmonize data, enhance contextual awareness, and predict challenges before they arise. As we step into Industry 5.0, it’s not just about automation but intelligent collaboration between human ingenuity and digital precision.”
Delivering the keynote address Kenji Anzai, Head – CNC Systems, Mitsubishi Electric India Pvt Ltd said, “Artificial Intelligence (AI) is not just a technological advancement, it is the foundation for the future of manufacturing. Human-machine collaboration is key, empowering devices to understand and respond intelligently to user commands while bridging information gaps. In an increasingly digital landscape, cybersecurity solutions are critical for protecting data, networks, and systems, ensuring secure and resilient operations. AI in manufacturing goes beyond automation; it fuels intelligent automation, enabling smart factories to be more efficient, adaptive, and sustainable. Addressing challenges such as workforce development, productivity enhancement, and global competitiveness requires AI-led solutions, from skill gap reduction and predictive maintenance to smart supply chain innovation. AI is not just an upgrade, it is the key to building a smarter, safer, and more resilient industry, positioning manufacturers at the forefront of global transformation.”
Setting the context, G Prakash, Chairman, Manufacturing Expert Committee, BCIC said, “India has a vast manufacturing base, with over 90% of our industrial units falling under the MSME category. These enterprises contribute nearly 30% of India’s GDP, employ 110 million people, and account for 48% of India’s exports. However, many MSMEs have yet to embrace digitalization, Industry 4.0, or AI, often perceiving these technologies as costly and complex. AI is not a luxury; it is a necessity. AI-driven solutions now available through affordable cloud-based and plug-and-play models can deliver productivity gains of 15% to 30%, enabling predictive maintenance, quality monitoring, and energy optimization, even in small-batch environments. Globally, AI adoption in manufacturing stands at 35–40%, with significant uptake in China, Germany, and the U.S. Yet India lags behind, with less than 25% adoption in organized manufacturing and even lower among MSMEs. Karnataka is leading the way, with initiatives such as Digital Economy Mission and AI innovation hubs actively supporting MSMEs.”
In his welcome address, Vineet Verma, President BCIC, said, “The AI revolution in manufacturing is not about replacing workers, it is about enhancing their capabilities. While concerns about job security persist, AI serves as an enabler, freeing employees from repetitive tasks and empowering them to focus on strategic and creative contributions. To thrive in this evolving landscape, upskilling and adaptability are essential. By embracing new technologies, businesses can boost efficiency, reduce costs, and enhance overall manufacturing processes, strengthening their competitive edge.”
Delivering the opening remarks, Prashant Gokhale, SVP, BCIC said, “In a rapidly shifting global landscape, the role of AI and sustainability in manufacturing cannot be overstated. Change is inevitable, but within change lies opportunity. India’s attractiveness on the world stage continues to grow but to remain competitive, we must focus on scale, sustainability, and innovation. With AI and digital transformation as our allies, we can forge a future where Indian manufacturing leads globally.”
In a special address, Thyagu Valliappa, Past President, BCIC and Group Chairman, Sona Group said, “Manufacturing excellence hinges on precision, traceability, and continuous improvement. Automation and digital tracking empower manufacturers to refine production processes, mitigate defects, and enhance decision-making. These technologies are not exclusive to large enterprises; MSMEs must also adopt AI-driven solutions to stay competitive in an evolving global market.”
A panel discussion on ‘Pilot to Plant-Wide: Harnessing AI to Accelerate Productivity and Efficiency Improvements in Manufacturing’ moderated by Rabindra Sah, CTO, Indian Register of Shipping with panellists including Ajay Jayantilal Singala, Trainer / Mentor, Freelance Technology Consultant, A T Kishore, Director, Dhanwantari Drone Pilot Academy and Dr. Balamurugan, Director, Business Growth Consulting opined that awareness about AI is minimal and therefore upskilling of employees is the need of the hour, as only 15 % SME’s and MSMEs adopt AI. The panel suggested that smaller companies should change their attitude and adopt AI in manufacturing to stay relevant. Mr. Rajesh K Shanmugam, CEO, Aroha Technologies delivered a special talk on Data to AI –Journey for Growth and Optimization.
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