Enabling small businesses with digital first tools for future growth

India is scripting history in tech-enabled socio-economic transformation. With innovations taking place at an increasingly fast pace, technology has considerably helped create new opportunities for millions to have impactful jobs, develop skills, and grow our economy in ways that will forever transform the country.

Building digital platforms as a public good, digital public infrastructure (DPI) has fostered a collaborative environment for both public and private sector entities, by bringing hundreds of millions of citizens into the formal system and onto a path of technological disruption.

Among the early DPIs in India, the Unified Payments Interface (UPI) revolutionized financial inclusion, impacting hundreds of millions of small businesses and customers by making digital payments seamless. As India leapfrogs into the digital era, DPIs will continue to play a significant role in further democratizing growth and ensuring a future that is inclusive.

Startups have been among the early adopters of DPIs and have leveraged it to create services and business models to lower costs and expand the reach of their services. Experts anticipate startups will combine different DPIs in innovative ways to create new offerings and improve existing solutions in sectors like retail, insurance, healthcare, and agritech. Among the emerging DPIs, ONDC (Open Network for Digital Commerce) has emerged as a potential disruptor in e-commerce and is expected to generate $250–300 billion in gross merchandise value by 2030.

ONDC provides the opportunity to democratize the e-commerce landscape, empowering small businesses to build digital visibility, access to a wider customer base and newer markets. Collaborative efforts with industry have paved the way for digitizing millions of small businesses, and providing them the impetus for growth.

In a country where personal connections are valued, messaging apps have become an integral part of daily communication. Traditionally, small enterprises relied on intermediaries or physical storefronts to facilitate customer interactions. With evolving preferences, 80% of Indian consumers are now opting for messaging as a preferred way to communicate with a business. The shift to messaging is driving the next chapter of digital transformation for businesses in India. It is a new area of consumer engagement built on chat experiences, which is going to see a vast array of use-cases and innovation.

The integration of generative AI into the small business ecosystem further holds the key to unlocking unprecedented opportunities. In the future, leveraging generative AI for personalized, context-aware messaging can empower small businesses to connect with their customers on a deeper level. Real-time engagement, personalized recommendations, and seamless feedback loops can redefine customer interactions, enhancing the overall experience. This can enable small enterprises to establish a more direct and meaningful dialogue with their customers.

By employing generative AI as a strategic tool, even a local artisan will have the ability to craft personalized business messages tailored to individual customers that offer the chance for increased engagement. Business messaging powered by AI, therefore, offers exciting prospects and has the potential to evolve beyond transactional exchanges, transforming into a precise and personalized dialogue that fosters loyalty and sustained growth.

The internet economy is projected to reach $1 trillion by 2030. As one of the world’s largest startup ecosystems and developer bases globally, India is well-positioned to be at the forefront of technology leadership. The nation’s pool of tech talent is unparalleled, providing for rapid innovation and technological advancement. The vibrant startup culture in the country is not only propelling local businesses forward, but also shaping the global narrative of AI development.

Being a powerhouse of skilled developers, India is poised to play a defining role in shaping the future of AI on a global scale. The convergence of Indian tech talent with generative AI technologies amplifies the potential for groundbreaking solutions. As Indian developers continue to contribute innovative perspectives and solutions, collaborative efforts within this ecosystem will undoubtedly leave an indelible mark on the global trajectory of artificial intelligence.

The advantages of an open ecosystem extend beyond national borders, fostering global collaborations that enhance local solutions. An open ecosystem provides a framework for collective decision-making on ethical guidelines, addressing concerns related to privacy, security, and fairness. This collaborative approach not only mitigates risks but also builds public trust, a critical element for the widespread adoption of AI technologies.

As the co-founder of Global Partnership on Artificial Intelligence (GPAI), India is actively engaging to foster the development, deployment, and adoption of an open, safe, secure and accountable AI. An open ecosystem, characterized by collaboration and inclusivity, facilitates the convergence of entrepreneurs, developers and consumers, and ensures that the integration of generative AI aligns with the unique requirements of India’s small businesses. In conclusion, a digitally-empowered future for small enterprises is not merely a technological evolution, but also an enabler to newer business frontiers.

Sandhya Devanathan is vice-president, Meta India.