87 per cent of Indian SMBs say AI is opening new advertising doors: Amazon Ads

NEW DELHI: For Indian small businesses, AI is proving to be more than just a buzzword. A new study by Amazon Ads found that 87 per cent of small and medium businesses (SMBs) surveyed say AI-powered advertising tools have helped them access channels, audiences or formats that previously felt out of reach.

The study also found that 75 per cent of Indian SMBs say AI-enabled advertising activity or strategy has supported business growth, highlighting how artificial intelligence is increasingly moving beyond creative production and into wider advertising and business planning.

AI is helping smaller businesses overcome traditional barriers such as cost, complexity and limited resources. One of the clearest examples is streaming TV, which has historically required larger budgets and more specialised planning.

Three years ago, 56 per cent of SMBs surveyed considered streaming TV a viable advertising channel. Among businesses that previously viewed the format as inaccessible, 48 per cent cited cost as a barrier, 39 per cent pointed to high minimum spending requirements and 36 per cent cited the complexity of planning or buying campaigns.

The perception has since shifted. Among SMBs interested in TV or streaming TV advertising, 62 per cent say the format can help them reach new audiences, while 59 per cent believe it can increase brand awareness. Another 48 per cent say it can help improve brand credibility.

The impact of AI is also extending beyond domestic advertising. Among respondents who considered cross-border campaigns inaccessible three years ago, 56 per cent now say such campaigns are more accessible.

AI-powered tools are helping reduce some of the friction involved in entering overseas markets, from adapting creative and targeting audiences to understanding market demand and compliance requirements. Amazon’s Seller Assistant, for instance, provides AI-powered guidance on product opportunities, market demand and country-specific compliance.

The shift is translating into broader business ambitions. Some 59 per cent of respondents say AI-enabled advertising has supported expansion into new countries, while 58 per cent say it has helped them launch new product categories.

Creative development is another area where AI adoption is gaining momentum. As many as 88 per cent of SMBs surveyed say they are likely to use AI to create advertising assets, while 85 per cent say they are likely to use AI specifically to produce streaming advertisements.

Meanwhile, 68 per cent say AI has unlocked greater creativity in their advertising, suggesting that smaller brands are using the technology not only to save time but also to experiment with formats and ideas that may previously have required specialist teams.

AI is also being used across campaign management. Some 65 per cent of SMBs say it enables faster optimisation, 62 per cent say it helps them find customers more quickly and protect their budgets, and 55 per cent say it helps them compete with larger brands with bigger advertising budgets.

Despite the growing role of AI, the study suggests that human judgement remains firmly in the driver’s seat. Among SMBs using AI to support advertising, business owners remain the final decision-makers for 40 per cent of respondents. Another 32 per cent use AI tools with human review, while marketing leads account for 19 per cent.

Only 2 per cent report making fully automated advertising decisions without human review, pointing to a largely human-led, AI-supported approach to advertising.

Looking ahead, 92 per cent of Indian SMBs surveyed say AI will be important to their future competitiveness. Its expected role is also broadening beyond campaign execution, with 64 per cent identifying content generation, 58 per cent strategic planning and 53 per cent competitor analysis as areas where they expect to use AI.

The study also highlights Klosia as an example of AI-led advertising. The women’s ethnic wear brand used Amazon Ads’ AI tools to turn a static product listing into a video advertisement for a Smart Streaming TV campaign.

According to the study, 80 per cent of customers reached through the campaign were new to the brand, while combining the AI-generated video campaign with Search Ads resulted in three times more purchases.

Overall, the findings point to a gradual democratisation of advertising, with AI helping smaller businesses access new formats, markets and creative capabilities without requiring the resources traditionally associated with large brands. For India’s SMBs, AI is increasingly becoming less about replacing people and more about helping them compete on a bigger stage.

Creative production is another area where adoption is accelerating. Some 88 per cent of respondents say they are likely to use AI to create advertising assets, while 85 per cent say they are likely to use it specifically for streaming ads. Another 68 per cent say AI has made them more creative in their advertising.

Campaign management is also benefiting from the technology. About 65 per cent of SMBs say AI enables faster optimisation, 62 per cent say it helps them find customers more quickly and protect advertising budgets, and 55 per cent say it helps them compete with larger brands with bigger budgets.

Yet the rise of AI does not mean business owners are handing over the advertising steering wheel. Human judgement remains central to decision-making.

Among SMBs using AI for advertising, business owners remain the final decision-makers for 40 per cent of respondents. Another 32 per cent rely on AI tools with human review, while marketing leads account for 19 per cent. Only 2 per cent report making fully automated advertising decisions without human review.

The study also points to growing expectations around AI’s role in future competitiveness. As many as 92 per cent of Indian SMBs surveyed say AI will be important to their ability to compete in the future.

Its expected role extends beyond campaign execution, with 64 per cent identifying content generation, 58 per cent strategic planning and 53 per cent competitor analysis as areas where AI will be useful.

The study also highlighted Klosia as an example of how smaller brands are using AI in practice. Klosia founder Vishal Singh Sisodiya said Amazon Ads’ AI tools helped the brand turn a static product listing into a video advertisement.

According to the brand, 80 per cent of customers reached through its Smart Streaming TV campaign were new to Klosia, while combining the video campaign with Search Ads generated three times more purchases.

The findings suggest that AI is gradually changing the economics of advertising for smaller businesses, giving them access to tools and formats that once demanded bigger budgets and specialist teams. For India’s SMBs, the next advertising advantage may not simply be spending more, but using AI to make every rupee work harder.