Kochi: Confederation of Indian Industry (CII) Kerala has highlighted the growing role of artificial intelligence (AI) in boosting productivity and competitiveness for MSMEs in Kerala, urging small and medium enterprises to adopt digital technologies to remain competitive.
The discussion took place during the CII Kerala Annual Members Meeting 2025-26, where a seminar titled "AI for MSMEs: Driving Productivity, Profitability, and Growth" examined how AI adoption in MSMEs can improve efficiency, automate operations and support business growth.
AI can reshape business models
Delivering the keynote address, Saji Gopinath, Vice Chancellor of Kerala University of Digital Sciences, Innovation and Technology, described artificial intelligence as a general-purpose technology capable of transforming industries.
He said entrepreneurs should go beyond applying AI to existing processes and instead rethink how their business models, workflows and decision-making systems operate in the digital economy.
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According to him, AI-driven automation can handle repetitive tasks, enabling employees to focus on innovation, strategic thinking and customer engagement, areas that create higher value for businesses.
AI adoption critical for MSME competitiveness
In a special address, Thomas John Muthoot, Chairman of the CII Southern Region and Chairman of Muthoot Fincorp Ltd, said AI technology can help MSMEs improve efficiency and productivity.
He noted that digital tools and AI solutions allow businesses to automate routine work and spend more time on purpose-driven activities and meaningful human interaction.
Joseph M Kallivayalil, Chairman of CII Kerala and Managing Director of Glenrock Rubber Products Ltd, called for faster adoption of AI tools by MSMEs, describing technology as a key factor in maintaining a competitive edge in evolving markets.
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Meanwhile, VKC Razak, Immediate Past Chairman of CII Kerala and Managing Director of VKC Footgear Pvt Ltd, said AI will not replace people, but businesses that adopt AI-driven technologies are likely to outperform those that do not.
Data-driven transformation for the Kerala industry
Industry leaders said AI integration, digital transformation and data-driven operations could help Kerala's MSME sector improve productivity, efficiency and global competitiveness.
By adopting AI-powered tools, automation and advanced analytics, MSMEs in Kerala can transition from traditional operations to high-performance, technology-driven businesses, positioning the state to lead the next phase of industrial growth and innovation.