TN’s AI future lies in empowering MSMEs, manufacturing, say experts

CHENNAI: Tamil Nadu's true AI opportunity lies not in building powerful frontier models but in making AI work for its MSME and manufacturing sectors, experts said at the SICCI CxO Conclave on AI. The event also hosted a 10-member German delegation visiting Chennai under the Europe Gateway programme to help Indian MSMEs explore the German market.

Organised jointly by the Southern India Chamber of Commerce and Industry (SICCI), iTNT Hub, and the German Indian Business Alliance (GIBA), the ninth edition of the conclave — 'AI Tamil Nadu 2030: Positioning Tamil Nadu as India's AI Capital' — brought together practitioners from India, Germany, and the US to map out the State's strategy in the global AI landscape.

While India may lag behind the US and China in developing fundamental models, it has not missed the broader opportunity, said B Ravindran, professor at IIT-Madras and head of its Centre for Responsible AI. "In terms of actually figuring out how to get the best value out of AI, there's still a lot of work that needs to be done," he said, noting that the technology's impact on MSMEs remains largely untapped.

Elaborating on practical application, iTNT Hub CEO Vanitha Venugopal said: "For an MSME, that could mean using AI for inventory forecasting, quality control or export documentation."

However, businesses must avoid adopting technology purely out of trend, cautioned Ann Grace, head of AI engineering, AI platform, and automation at US-based Guardian Life. She advised companies to evaluate whether a problem genuinely requires AI, assess their data, and determine expected business returns before investing.

SICCI executive committee member Gopi Koteeswaran observed that enterprise AI remains an evolving space requiring significant investment in expertise, time, and resources. He highlighted MSMEs, automotive, healthcare, and drug discovery as key areas where Tamil Nadu could take the lead.

Selvakumar, who led the German delegation, noted that Europe and Germany are focused on AI applications in manufacturing and precision engineering. He called for deeper collaboration with Tamil Nadu on AI infrastructure and Sovereign AI.

SICCI also released a report titled "The Way Forward: AI for Tamil Nadu" during the event.