Changing Landscape of Artificial Intelligence on Indian Corporate Sectors and Governance: Special Reference to SMEs

Abstract

Artificial intelligence (AI) has the likely to start a new industrial upheaval that will primarily alter market forces at work and working circumstances. This study tries to clarify what artificial intelligence (AI) is, how it could affect corporate sectors and SME operations, and India's adoption challenges. Governments can help SMEs develop their risk supervision procedures. Most industries can benefit from using AI, although some are more likely to do so than others. AI may be used in several business areas and can alter the internal value chain of the company. The areas of business where artificial intelligence (AI) are expected to have the most effects. Objective: It is necessary to create the circumstances for a reliable transition and increase knowledge of the benefits of AI among SME managers and employees. A participative approach should be taken when revamping work processes and training AI models, and national and local governments should coordinate efforts to reskill SME managers and employees. Then, until AI can fulfil its full potential, mechanisms for bridging the financing gap should be identified. Research Methodology: The study's foundations include both qualitative and quantitative research. Regulators and policymakers should make sure that knowledge markets that offer cloud solutions with embedded AI technologies are operating smoothly. Findings: The findings of the research are based on the role and impact of AI on different aspects of governance like public administration, tax compliances, market competition, infrastructure, finances, labor market etc. Conclusion: AI lowers prediction costs significantly and makes decision-making easier. To map uncertainties and reduce risk exposure, SMEs may use predictive analytics. They can also automate business estimates, including sales and budget forecasts, or improve the effectiveness of asset maintenance and management. Greater market segmentation and price differentiation are made possible by improved prediction capabilities, which also provide SMEs the chance to innovate since they are better able to foresee customer behavior and price sensitivity as well as demand changes.