In the rapidly evolving industrial landscape of Gujarat, the conversation has shifted from digital transformation to an absolute mandate: the adoption of Artificial Intelligence. For Small and Medium Enterprises (SMEs), which form the backbone of the state’s economy, AI is no longer a futuristic luxury but a necessary tool for operational survival. As global supply chains become more data-driven, local businesses—especially those that have been family-run for generations—face a critical juncture. Adopting AI isn’t just about automation; it’s about achieving the cost optimization and predictive efficiency required to compete on a global stage.

Mr. Sandip Shah, a veteran CIO turned strategic consultant, will discuss how Gujarat’s traditional industries are navigating this shift and why the “new electricity” of AI is redefining the workforce.

Q1. As an industry veteran in Gujarat, how are you seeing traditional and family-run businesses react to the AI wave? Has the approach changed at the board level?

Ans: Absolutely. AI is now a permanent fixture on the board meeting agenda. Management is no longer just curious; they are actively trying to implement AI across various parts of the organization. The focus is primarily on process automation and leveraging technology for better efficiency and cost optimization. We are seeing AI agents being deployed to handle customer reach-outs and to manage complaints more effectively. It’s a shift from “if” to “how” they can use it to improve their bottom line.

Q2. That makes sense for large corporations, but what about the traditional, family-run businesses that are so prevalent in this region? How are they viewing this tech?

Ans: There is a generational shift happening. The new generation entering these family businesses is well-educated and well-versed in global technology trends. They want to use technology at every level—from product costing and distribution to high-level decision-making. They see the fruits of AI and are eager to deploy it to ensure their legacy businesses stay relevant in a modern market.

Q3. Before an enterprise jumps into the deep end, what are the key things they should keep in mind before deploying an AI tool?

Ans: The first and most critical thing is clarity of objective. If your objectives aren’t clear, you will have a problem. Many AI companies will approach you with flashy products and promised benefits, but you must know exactly what you want to achieve. My advice is to start with a Proof of Concept (POC). “Taste the water” first. See how it works for your specific needs, and only then scale up into your mainstream business operations. Currently, about 90% of AI in organizations is still at the POC level; wide-scale deployment is the next big step.

Q4. You’ve consulted for many international firms as well. Do you see a difference between how Indian companies and Western companies handle AI? Is anyone 100% dependent on it yet?

Ans: No one should be 100% dependent. When you deploy AI, the control must remain with you. We’ve seen instances where AI has accidentally deleted source codes or databases because it was given too much autonomy. AI should act as your digital assistant, working side-by-side with you, but it should never overrule human decision-making. You use the power of AI, but you keep the steering wheel.

Q5. We see AI used heavily in internal operations, but what about consumer-facing roles? Can a bank or an insurance agency really trust AI to handle customers directly?

Ans: It’s already happening. Major banks like ICICI and HDFC, as well as big insurance players, are using AI widely. It’s all consumer-facing now, often through WhatsApp or predefined menus. The AI fetches data from internal IT systems and provides immediate results. In fact, I believe 90% of customer complaints can be resolved through AI agents. If a matter is too complex or out of scope, it gets escalated to a human. It’s about speed and accessibility.

Q6. There is a lot of anxiety regarding job security. In your prediction, what is the actual threat to the workforce as AI becomes more prevalent?

Ans: It’s a very good question. There is definitely a threat, particularly for entry-level jobs. Those roles will be impacted. However, the person who learns to take advantage of AI will survive and thrive. AI increases efficiency and creates results faster than traditional methods ever could. The real danger is for the person who remains isolated from technology. AI will also create entirely new roles—look at “Prompt Engineering.” That job didn’t exist three years ago, and now those professionals are among the highest paid globally. We will see more roles in AI configuration and systems integration. Those who stick strictly to traditional ways will be in trouble.

Q7. To wrap up, what are your top three pieces of advice for companies planning their first AI deployment?

Ans: First, be crystal clear about what you want from the system. Second, start small with a POC to test the waters. And third, remember the infrastructure. I always say: Data is the new oil, the Data Center is the powerhouse, and AI is the new electricity. Without the proper infrastructure and a solid data foundation, AI cannot sustain itself.