AI opens new advertising avenues for India’s small businesses: Study

Artificial intelligence is helping India’s small and medium businesses (SMBs) overcome traditional barriers to advertising, making it easier for them to reach new audiences, experiment with new formats and pursue growth opportunities, according to a new study commissioned by Amazon Ads.

Nearly nine in 10 SMBs surveyed said AI-powered advertising tools had enabled them to access channels, audiences or formats that previously felt out of reach, including streaming TV. Three-quarters said AI-enabled advertising had supported business growth, while 68% said simplified tools had helped them become more creative with their advertising.

The findings come as AI adoption among Amazon advertisers in India accelerates. The share of Amazon advertisers using AI-powered tools has grown 77% year over year, while SMBs generated 62% more ad creatives using those tools in the first quarter of 2026 than a year earlier.


Streaming TV is emerging as a more viable option for smaller advertisers. Three years ago, cost, high minimum spending requirements and the complexity of planning and buying were among the main reasons businesses considered the channel inaccessible.

Today, SMBs interested in TV or streaming TV advertising see the channel as a way to reach new audiences, build brand awareness and strengthen credibility.

The shift is also extending to international markets. More than half of Indian SMBs that considered cross-border advertising inaccessible three years ago now say it is more accessible.

Amazon’s Seller Assistant provides AI-powered expansion guidance, including product recommendations, market-demand insights and support for country-specific compliance requirements, helping businesses identify international growth opportunities.

AI is also changing how SMBs create and manage advertising. Most businesses surveyed said they were likely to use AI to create advertising assets, including streaming ads.

The technology is helping businesses optimise campaigns faster, find customers more quickly and compete with larger brands with bigger advertising budgets. It is also lowering the cost and effort involved in experimenting with new markets and products.

Despite the growing use of AI, human judgement remains central. Business owners are still the most common final decision-makers, while fully automated advertising decisions without human review remain rare.

Looking ahead, 92% of Indian SMBs surveyed said AI would be important to their future competitiveness. Businesses are increasingly looking to the technology not only for content creation but also for strategic planning and competitor analysis.

The research was conducted by Opinium on behalf of Amazon Ads among 300 B2C marketing decision-makers from SMEs in India, as part of a wider survey of 4,100 respondents across 14 countries. The research covered industries including goods and manufacturing, e-commerce and retail, financial services and beauty. Data was collected between April 7 and April 23, 2026.