By Bhaskar Ganguli, Director, Marketing and Sales, Mass Software Solutions Pvt. Ltd.
Micro, small, and medium enterprises (MSMEs) form the cornerstone of global economies, comprising 90% of businesses worldwide and providing 60–70% of employment. They especially employ marginalised groups such as women, youth, and poor individuals, contributing significantly to GDP. MSMEs also play a critical role in providing sustainable livelihoods while furthering economic expansion. However, in today’s competitive digital landscape, MSMEs are under tremendous pressure to develop and grow quickly and the best way that MSMEs can grow is by implementing outstanding marketing strategies. Though mainly because of budgetary constraints, smaller businesses find it difficult to utilise traditional marketing tactics. Artificial intelligence offers a potential solution to this major issue. As 86% of businesses have adopted video-based marketing, utilising AI tools, especially video-creating tools, can solidify their foundation in the current market and accelerate their transformation to become more profitable.
The rise of GenAI in MSMEs
Generative AI, particularly video generation, has rapidly evolved to become an efficient tool that provides high-quality videos for MSMEs. AI-generated videos, in particular, are projected to experience exponential growth between 2024 and 2030 at an expected compound annual growth rate of 46.47%, reaching USD 356.10 billion due to increasing demand from various industries, including MSMEs. Video-creating AI tools offer MSMEs an innovative method to create realistic videos from simple text inputs. Hence, enabling MSMEs to produce professional-grade videos using minimal resources or expertise, which truly empowers these businesses.
The impact of video-generating AI on MSMEs
As mentioned before, video content is turning into a critical component of digital marketing strategies. For MSMEs, the ability to create engaging video content can greatly enhance brand visibility and customer engagement. The primary issue is that traditional video production can be expensive and take a lot of time, making it tough for smaller businesses facing the problem of budgetary constraints. The tools backed by Generative AI address these challenges by streamlining the video production process. MSMEs can now generate high-quality videos quickly and cost-effectively which allows them to maintain a consistent online presence and respond to market trends with agility. This technology also enables businesses to experiment with different types of content, from product demonstrations and explainer videos to personalised marketing messages.
The wider impact of GenAI on MSMEs
Generative AI offers even greater potential to small and midsize businesses than video production alone. By producing content at the speed of demand—whether text, images, or video—companies can operate more flexibly and innovate more easily. Adaptability is vital in this quickly evolving digital environment, where consumer preferences change almost instantly. Anticipating changing consumer needs is a paramount component for success in such an unpredictable environment. AI-powered tools enable businesses to automate repetitive tasks, streamline content production, and free up resources for more essential tasks. McKinsey & Company estimates that AI could add between $2.6 trillion and $4.4 trillion of value across different industries, providing MSMEs with the necessary resources to compete fairly against larger rivals.
The future of MSMEs with video-generating AI
Looking ahead, it seems quite evident that video-generating AI is going to play a bigger role in how MSMEs operate. With AI tech advancing so quickly, we can expect to see even more advanced tools that offer more customisation, interactivity, and smooth integration with digital platforms. Accenture estimates that the potential impact of AI is significant: their report predicts it could boost labour productivity by as much as 40% by 2035 and thus double economic growth across 12 developed nations, providing long-term advantages to MSMEs looking to expand operations. This means that MSMEs aiming to grow their operations could benefit in the long run by embracing these technologies.
To conclude, the rise of video-generating AI is a game-changer for digital MSMEs, bringing a whole new level of potential to how they run their businesses and connect with customers. Tools backed by the fast-paced growth of generative AI are giving MSMEs amazing access to top-notch video content. By tapping into these technologies, MSMEs can overcome old challenges, enhance their online presence, and drive sustainable growth in a tough market. Being able to adapt and innovate is crucial for MSME success, and video-generating AI is a powerful tool to help make that happen. As more people recognise the value of AI-driven content creation, we can look forward to a fresh wave of digital transformation where MSMEs thrive globally.
