The Confederation of Indian Industry Kerala highlighted the transformative potential of artificial intelligence (AI) for the state's micro, small and medium enterprises (MSMEs) at its Annual Members Meeting 2025–26 in Kochi. The event formed part of the Application & Digi-Tech Series 2026 and included a seminar titled AI for MSMEs: Driving Productivity, Profitability, and Growth that examined practical pathways for adoption. Organisers emphasised that AI can provide a competitive edge to local businesses when integrated with strategic planning. The meeting brought together industry leaders and stakeholders to discuss implementation challenges.\n\nDr Saji Gopinath, Vice Chancellor of the Kerala University of Digital Sciences, Innovation and Technology, delivered the keynote address and characterised artificial intelligence as a general purpose technology and a great equaliser. He urged entrepreneurs to move beyond applying AI to legacy processes and to rethink business models so that technology enables new value. Speakers noted that adoption should focus on redesigning workflows and developing digital skills across the workforce. The discussion considered regulatory, infrastructure and finance constraints.\n\nPanel contributions highlighted automation of routine and repetitive tasks as a primary productivity gain, enabling staff to shift toward higher value roles such as innovation, customer engagement and strategic planning. Thomas John Muthoot, Chairman of CII Southern Region, stressed the strategic importance of technology for regional competitiveness and said that MSMEs can use AI to free time for purpose driven work and authentic human interaction. Presenters outlined practical tools, pilot projects and collaboration models that can scale within supply chains and service sectors.\n\nJoseph M. Kallivayalil, Chairman of CII Kerala, advocated immediate adoption of AI tools, identifying them as a critical lever for maintaining competitive advantage in a rapidly evolving market. VKC Razak, Immediate Past Chairman, observed that while artificial intelligence will not replace humans, enterprises that embrace the technology will supplant those that do not, making adoption essential. By transitioning from traditional operations to data driven, high performance entities, Kerala's MSMEs can position themselves to lead the next wave of industrial growth and to compete on a global scale.