A new industry study shows that AI tools are helping Indian small businesses access high-value advertising channels like streaming TV. Use of these tools among Amazon advertisers in India jumped 77% last year, signaling a major shift in how small firms compete for digital reach and global customers.
Indian small and medium businesses (SMBs) are rapidly changing how they advertise, with AI tools opening doors to marketing channels previously reserved for large corporations. A recent industry study highlights that AI-enabled advertising tools have seen a 77% surge in usage among Amazon advertisers in India year-over-year. This rapid adoption indicates that AI is becoming a core component of digital strategy for smaller firms looking to scale.
In the first quarter of 2026, these businesses produced 62% more advertising creative compared to the same period last year. Historically, channels like streaming television were out of reach for smaller firms due to high costs, technical complexity, and rigid planning requirements. AI is lowering these barriers by automating creative workflows and providing data-driven guidance, allowing businesses to test high-impact formats with significantly less upfront effort and cost.
Beyond domestic reach, AI is simplifying the path to international markets. More than half of the small businesses surveyed that previously found cross-border advertising difficult now consider it accessible through AI-driven insights on product recommendations, market demand, and regulatory compliance. This trend suggests that large digital platforms are increasingly positioning themselves as full-service growth partners for small enterprises, moving beyond basic product listings to active business development services.
While AI tools offer clear improvements in efficiency and reach, they also introduce business risks that stakeholders should track. Over-reliance on automated tools without a solid marketing strategy can lead to wasted spending on ineffective campaigns. Furthermore, as digital marketing shifts away from third-party tracking toward first-party data and predictive modeling, businesses must navigate increasing complexity in data privacy. There is also a competitive risk for companies that fail to adopt these technologies; early adopters are reporting higher efficiency, which may widen the performance gap between digital-native SMBs and those relying on traditional advertising methods.
For the industry, the next important monitorable will be the actual return on investment (ROI) that these businesses achieve. As SMBs integrate AI for deeper tasks like strategic planning and competitive analysis, the ability of advertising platforms to prove tangible, long-term business growth—rather than just an increase in advertising volume—will likely define the next phase of this digital advertising expansion.