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From automation to real impact: Creating right environment for SMEs to trust AI - The Economic Times

Published 17 hours ago5 minute read
From automation to real impact: Creating right environment for SMEs to trust AI
By Pravin Fernandes, ET CONTRIBUTORS
revolution is no longer limited to large enterprises. Today, Agentic AI that can plan, reason, and take action autonomously for various business needs is becoming more accessible and relevant for small and medium-sized enterprises (SMEs).Let's zoom in on India’s growing class of digital-native and SMEs. For example, startups and younger enterprises born on the cloud are often the earliest adopters of emerging technologies, including Agentic AI. For these businesses, integrating AI isn't about overhauling legacy systems; it’s about building intelligently from the ground up. Their cloud-first infrastructure, flexible tech stacks, and agile teams make it technically easier to experiment with AI-driven solutions.

However, barriers still exist. While infrastructure is less of a hurdle for digital-native and SME businesses, challenges like the lack of domain-specific models, limited access to skilled talent, and uncertainty around ROI persist. Many founders and CEOs are still navigating the gap between AI hype and real-world impact—working to identify operational use cases that truly support business growth. But the real opportunity goes beyond building more intelligent AI agents; it lies in creating the right environment for them to operate, learn, and thrive, especially for small businesses focused on strategic resource optimization and high-impact returns.


Building trust in AI for SMEs begins with control and clarity—not complexity. Even without large data teams, businesses must ensure clear governance—who accesses what data, how it’s used, and how outcomes are interpreted. Be aware of pitfalls like hallucinations, security, and their ability to make incorrect decisions without human oversight.
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Compliance and transparency are critical in finance, manufacturing, logistics, and healthcare industries. AI systems must support role-based access, data lineage, and auditability. No matter how advanced the technology, AI is only as effective as the trust it earns. Responsible adoption starts with making data governance simple, scalable, and secure, and ensuring regular checks and balances with humans in the loop.


Agentic AI is not only about massive volumes of data—it demands the right data. For SMEs, this means breaking down internal silos, tidying up spreadsheets, and ensuring that core business systems, various departments can communicate with each other. Whether it's customer feedback, sales records, or inventory logs, the quality, consistency, and accessibility of data determine the accuracy and usefulness of AI-driven insights.In this new era, clean data is the new code—it fuels better decisions, faster responses, and more relevant, real-world outcomes.


For SMEs, the journey to Agentic AI doesn’t require massive upfront investments. With Flexible, consumption-based cloud models, businesses can start small—running proofs of concept (POCs) tied to clear business outcomes. Whether streamlining operations, enhancing customer insights, or automating reports, each step is built to deliver measurable ROI. That could mean automating customer support, improving inventory forecasting, or speeding up response times. But it only works when agents are embedded in workflows that scale as you grow—securely, efficiently, and with limited manual intervention.

A platform’s ability to scale seamlessly means that once value is proven, expansion is fast, secure, and cost-effective without needing to rebuild or replatform. In addition, SMEs should look for built-in support for structured and unstructured data, native AI integrations, and robust data sharing capabilities that enable them to grow at their own pace. SMEs can transform operations with cost-effective, specialized AI agents that deliver tangible returns. They can create customer service chatbots and email automation systems that can provide round-the-clock service. Sales support agents can help streamline lead qualification and nurturing. Document processing automation can cut manual processing while minimizing invoice and contract handling errors. HR process automation through AI agents can help with administrative tasks, while inventory management agents can help optimize stock levels. These solutions typically require minimal upfront investment using cloud-based platforms, with ROI often visible within a few months of implementation.


Intelligent agents are most effective when they don’t work in isolation, but as part of a connected digital workflow. Agentic AI thrives when it connects with your existing tools—your CRM, analytics dashboards, ERP systems, or even WhatsApp for business.

For growing businesses, the ability to link AI systems with partner platforms, industry data sources, and even public infrastructure unlocks faster decisions, richer insights, and greater agility.

In short, connection—not complexity—is the key to scaling AI impact.


For digital natives and SMEs, technology isn’t the barrier—empowerment is. Agentic AI delivers real value only when teams know how to use it effectively. That starts with practical training, building digital fluency, and fostering a mindset where humans and AI collaborate to drive efficiency and innovation. When teams are confident and equipped, adoption accelerates—and so does impact. Just as important, these businesses need flexible, scalable systems that allow their AI solutions to evolve with emerging tools and market shifts.

Agentic AI is no longer the domain of large enterprises alone. For digital-native and forward-looking small businesses, it presents a unique opportunity to accelerate growth—from faster decision-making and smarter operations to richer customer engagement.

However, the real advantage lies not in advanced models but in building the right environment around them—one that encourages human-AI collaboration, prioritizes trust, and aligns technology with business goals.

To lead in this new era, SMEs must invest in clean, connected data, foster AI-ready teams, and embed governance from day one. It's all about amplifying capabilities.

Because success in the age of Agentic AI isn’t just about building intelligent and innovative systems, it’s about building the foundation and creating a smarter collaborative environments that allow AI to work with you.

The author is Head of Commercial Business- India, Snowflake

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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