AI-powered solutions are enabling Indian SMEs (Small and Medium Enterprises) and MSMEs (Micro, Small, and Medium Enterprises) to automate routine tasks such as bookkeeping, invoicing and financial forecasting adding to the growth of the industry.

Thes enterprises make up more than 60 million of them, contributing to over 30 per cent of the nation’s GDP and employ more than 110 million people.

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Artificial intelligence (AI) is helping address these challenges by providing tools that simplify financial management, enhance compliance, and support the growth of the sector.  

“AI is making financial management more accessible for Indian SMEs and MSMEs,” said Mohit Tomar, Head- Credit Control of Embee Software.

“With AI, businesses can automate complex financial tasks, access real-time data insights, and ensure compliance with regulatory standards. This helps them maintain a stable financial position, which is critical to their success and the overall health of the Indian economy,”  added Tomar.

By automating tasks, businesses can reduce human error by up to 90 per cent and improve accuracy, allowing owners to focus on growth.

AI tools can categorise transactions, identify discrepancies, and ensure that all financial entries align with the latest regulations, saving businesses an estimated 20 per cent in time and operational costs.  

AI also offers predictive analytics that helps businesses anticipate market trends, manage cash flow more effectively, and reduce financial risks.

By implementing AI-driven tools, SMEs and MSMEs can improve cash flow forecasting by 30 per cent and reduce the risk of financial mismanagement by 40 per cent. These tools not only help individual businesses but also strengthen the sector’s contribution to India’s GDP, which stands at over USD 3 trillion.  

As more Indian SMEs and MSMEs adopt AI-driven financial management tools, they are better positioned to expand, compete in global markets, and contribute to India’s economic growth.

AI’s role in financial management is crucial for ensuring sustainable growth in the sector and fortifying the country’s economic landscape.