9 in 10 SMBs in Bengaluru bet on AI as the city reinforces its position as India’s tech innovation hub: LinkedIn Study
Bengaluru, Nov 20: Bengaluru’s small and medium businesses (SMBs) are entering their most confident decade yet. New LinkedIn research finds that 98% of SMBs in the city are rapidly adopting or planning AI adoption, indicating how technology has moved from experimentation to infrastructure. Meanwhile, 92% of SMBs here expect business growth – signalling a sector that’s not just hopeful but rebuilding around smarter systems, skilled talent, and trusted digital platforms.
For Bengaluru’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 63% of SMBs cite operational efficiency as key to protecting margins, 61% view AI and automation as essential to stay competitive, and 50% say market expansion is critical to survival. In the city’s fast-paced, innovation led business environment, SMBs see AI not as an optional upgrade but as a necessary lever for agility, resilience, and long-term competitiveness.
Kumaresh Pattabiraman, Country Manager, LinkedIn India said,
“Bengaluru has long been India’s innovation nerve centre, and SMBs here operate in one of the most competitive and tech-forward markets in the country. This research exemplifies their readiness to lead the next wave of AI adoption. LinkedIn is uniquely positioned to support this momentum by connecting SMBs with the right network, the right clients, and the right talent, all in one place, so they can scale with confidence in today’s AI-powered economy.”
AI becomes the operating system for growth in Bangalore
AI has become the engine behind how SMB’s hire, market and grow. The city demonstrates consistently high-momentum across adopting or planning to adopt AI-led capabilities. Nearly 94% of the surveyed businesses in the city say they use or plan to use it to automate workflow, strengthen analytics, and lean on the technology to streamline hiring, marketing, and sales.
Hiring models are being rebuilt around capability, not credentials. SMBs in the city are prioritising digital literacy and AI fluency (72%), problem solving (61%) and data analysis (60%) over traditional qualifications. To find this talent, 72% already use AI hiring tools, citing better assessments and higher engagement.
Marketing and sales in SMBs here are also becoming intelligence-driven. 82% of SMBs use AI marketing tools, with 95% investing up to half their budgets in them. 83% now rely on AI in sales to drive productivity, qualify leads, and personalise outreach, 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
In a city known for its digital maturity, SMBs here are highly discerning about the tools they adopt. 97% of SMB decision makers say their decisions are driven more by credibility and trust than by cost or convenience, with top priorities including data security (89%), seamless integration (84%), and clarity on ROI (76%). Together, these choices reflect a smarter, more resilient SMB ecosystem – one that is not just adapting to the AI era, but actively shaping it.
Methodology:
LinkedIn commissioned YouGov to conduct an online survey of 1,027 SMB and MSME owners, entrepreneurs, directors, and senior managers across India. The study covered 10 key cities including Delhi NCR, Jaipur, Chandigarh, Mumbai, Ahmedabad, Pune, Bengaluru, Chennai, Hyderabad, and Kolkata, distributed across North & Central, West, South, and East regions.
Respondents represented businesses across the Micro (up to ₹10 crore), Small (₹10–100 crore) and Medium (₹100–₹500 crore) turnover segments. Participants were aged 25 to 65 years, capturing perspectives across both emerging and seasoned decision-makers.