9 in 10 SMBs in Hyderabad now bet on AI as digital transformation accelerates: LinkedIn Study
Hyderabad’s small and medium businesses (SMBs) are entering their most confident decade yet. New LinkedIn research highlights that the city’s SMB decision-makers show some of the highest AI readiness levels in the country, with 9 in 10 SMBs (91%) either already investing in or planning to invest in AI solutions. At the same time 91% of decision-makers expect business growth over the next year - signalling a sector that’s not just hopeful but rebuilding around smarter systems, skilled talent, and trusted digital platforms.
For Indian SMBs, evolution is survival, not optional
Behind their confidence lies urgency. AI is no longer a buzzword, but the new baseline for growth. The research shows that 57% of SMBs say AI and automation is central to staying competitive, 52% view operational efficiency as key to protecting margins, and 51% think that securing future-ready talent is critical to survival.
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. What we’re seeing is a decisive shift from experimenting with digital tools to deeply embedding them across core operations. At LinkedIn, our priority is to support this transition by connecting entrepreneurs to the right network, the right clients, and the right talent, all in one place, so they can scale with confidence in today’s increasingly AI-powered economy.”
AI is the core operating engines for SMBs in Hyderabad
AI has become the engine behind how SMB’s hire, market and grow. Nearly all surveyed businesses say they use or plan to use it to upskill employees (94%), strengthen analytics and business intelligence (93%), and automate workflows (92%).
Hiring in the city is shifting decisively toward capability over credentials. SMBs prioritise problem-solving (68%), digital literacy and AI fluency (64%), and data analysis (53%) over traditional qualifications. To hire future-ready talent, 52% already use AI hiring tools, citing higher efficiency and better engagement.
Marketing and sales, for these SMBs too, are becoming intelligence-driven. 65% of SMBs use AI marketing tools, with the majority investing up to half their budgets in them. 65% now rely on AI in sales for sharper targeting and automated follow-ups, allowing them to operate with the sophistication of larger enterprises.
Rahul Karthikeyan, Chief Marketing Officer, Scaler said, “Scaler’s recent campaigns have seen strong performance through precise audience targeting and data-driven optimisation. Sponsored Content, especially vertical formats, delivered a 20% higher lead-to-payment conversion than static formats on other channels. In August alone, LinkedIn generated about 70–80 new payments with a return on spend (RoS) of 2.2. We plan to further scale this high-impact channel while maintaining cost-per-sale efficiency.”
Trust and platform credibility emerge as Hyderabad’s new competitive edge
Even as they adopt AI at speed, SMBs are discerning about where they place their trust. 93% say platform credibility matters more than cost or convenience. Their top considerations are data security (85%), seamless integration (77%), and clarity on ROI (78%). Together, these shifts signal the rise of a smarter, more resilient SMB ecosystem - one that is not just adapting to the AI era but actively shaping it.