9 in 10 SMBs in Hyderabad adopt AI as digital transformation accelerates: LinkedIn stud

LinkedIn research reveals that 91% of Hyderabad SMBs are adopting or planning to adopt AI solutions, with equal optimism for business growth. AI is driving hiring, marketing, and operations, while platform credibility and data security emerge as key competitive advantages.

Hyderabad: Small and medium businesses (SMBs) in Hyderabad are leading India’s AI adoption wave, with 9 in 10 SMBs (91%) already investing or planning to invest in AI solutions, according to new LinkedIn research. At the same time, 91% of decision-makers expect business growth over the next year, signaling a sector focused on smarter systems, skilled talent, and trusted digital platforms.

The study highlights that AI is central to SMB strategy in Hyderabad. 57% of SMBs say AI and automation are critical to staying competitive, 52% view operational efficiency as key to protecting margins, and 51% prioritize securing future-ready talent for survival.

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Kumaresh Pattabiraman, Country Manager, LinkedIn India, said, “Hyderabad’s SMBs are showing what the next decade of growth looks like—ambitious, tech-forward, and deeply committed to building resilient businesses. We’re seeing a decisive shift from experimenting with digital tools to embedding them across core operations. LinkedIn supports this transition by connecting entrepreneurs to the right network, clients, and talent so they can scale confidently in today’s AI-powered economy.”

AI drives hiring, marketing, and operations

AI is now integral to how SMBs hire, market, and grow. 94% of businesses use or plan to use AI for employee upskilling, 93% for analytics and business intelligence, and 92% to automate workflows. Hiring priorities emphasize problem-solving (68%), digital literacy and AI fluency (64%), and data analysis (53%) over traditional qualifications. Additionally, 52% of SMBs already leverage AI hiring tools for efficiency and engagement.

Marketing and sales are also increasingly intelligence-driven. 65% of SMBs use AI marketing tools, with many allocating up to half their budgets to them. The same percentage relies on AI for sales targeting and automated follow-ups, enabling smaller businesses to operate with enterprise-level sophistication.

Rahul Karthikeyan, CMO, Scaler, said, “Scaler’s campaigns on LinkedIn have delivered precise audience targeting and data-driven optimisation. Sponsored Content achieved 20% higher lead-to-payment conversion than other channels. In August alone, LinkedIn generated 70–80 new payments with a RoS of 2.2.”

Trust and platform credibility matter

Hyderabad’s SMBs are selective about digital platforms. 93% say platform credibility matters more than cost or convenience. Their top considerations include data security (85%), seamless integration (77%), and clear ROI (78%), reflecting a more resilient, AI-driven SMB ecosystem that actively shapes India’s digital economy.