Indian SMBs embrace AI in advertising to drive growth, efficiency and better campaign performance

New Amazon Ads research shows 89% of Indian SMB marketing leaders believe AI will unlock future business growth, with most already using or testing AI tools despite facing challenges such as tool overload and limited confidence in adoption.

Small and medium-sized businesses (SMBs) across India are increasingly confident about the potential of artificial intelligence (AI) to transform advertising and fuel long-term growth, according to new research from Amazon Ads. The study reveals that 89% of SMB marketing leaders expect AI-driven advertising to free up time for strategic priorities, while 71% are already using or experimenting with AI tools in their campaigns. However, many businesses still face implementation hurdles, including uncertainty about where to start and feeling overwhelmed by the sheer number of tools available.

Efficiency gains and cost reductions on the horizon

Marketing leaders estimate that integrating AI tools into advertising workflows could save them an average of 5.2 hours per week—equivalent to roughly 30 working days annually. This extra time, they say, will be invested in core business growth areas such as boosting sales efforts, enhancing team skills, and tapping into new marketplaces. SMBs also anticipate a 31% drop in advertising costs over the next year, driven by improved data analysis, better campaign performance predictions, optimized reporting, and AI-supported media planning.

Early adopters are already witnessing benefits, including automated visual creation, improved performance forecasting, and faster ad copy generation—capabilities previously reserved for larger enterprises. Looking ahead, SMBs expect AI to help broaden audience reach, accelerate creative content production, and automate routine advertising tasks.

Balancing AI adoption with human control

Despite growing usage, confidence gaps remain. Around 60% of SMB marketing leaders feel overwhelmed by available tools, while over half admit they don’t know how to begin using AI effectively. Some even feel unsure about their ability to use AI correctly, underscoring the need for simpler, more intuitive solutions.

Amazon Ads leaders say their AI-powered tools—including Creative Studio, Image Generator and the new Video Generator—are designed to help SMBs overcome these barriers. “Every hour saved can go toward building stronger customer connections or developing new products,” said Kapil Sharma, Director of Amazon Ads India.

Importantly, SMBs want AI to enhance—not replace—human decision-making. The study shows strong preference for maintaining human oversight in areas like creative approvals, budget decisions, and cultural context.

For many brands, AI tools have already become a game-changer. Sukriti Mendiratta, Founder of Panda’s Box, noted that Amazon Creative Studio has helped her team cut production time, improve engagement, and boost ad efficiency by 20%.