IIT Madras ties up with FaMe TN to boost AI adoption among MSMEs

Chennai: The Indian Institute of Technology Madras has joined hands with FaMe TN, a state-backed platform for micro, small and medium enterprises, to push artificial intelligence-led digital transformation across Tamil Nadu. The partnership targets MSMEs that have been slow to adopt new technology.

Bridging the tech gap for small businesses

MSMEs form the backbone of Tamil Nadu's economy, but many still rely on traditional methods. The initiative will offer workshops, toolkits, and direct mentoring to help these businesses integrate AI into their daily operations.

Officials said the programme will cover sectors such as manufacturing, textiles, and food processing. These industries employ lakhs of workers across the state.

What FaMe TN brings to the table

FaMe TN, short for Factory and Manufacturing Excellence for Tamil Nadu, already works with thousands of small units. Its network will act as the entry point for the new AI-focused push.

The platform will identify MSMEs that are ready for digital upgrades. IIT Madras will then step in with technical expertise and customised solutions. The aim is to create replicable models that other businesses can adopt.

Training and hand-holding

Faculty and researchers from IIT Madras will train local trainers and industry champions. These champions will then work directly with MSME owners.

The programme also plans to set up demonstration centres where business owners can see AI tools in action. Simple use cases like inventory management, quality control, and predictive maintenance will be showcased.

Long-term vision for the sector

The partnership is not a one-off workshop series. Both organisations have committed to a multi-year roadmap. The goal is to build a self-sustaining ecosystem where MSMEs can independently adopt new technologies.

Initial funding and resources are being pooled from state schemes and institutional budgets. Private sector partners may join later to scale the effort.

Officials have not yet disclosed specific targets or timelines. But sources indicate that the first batch of pilot units will be onboarded within the next quarter.

The push comes as the central and state governments ramp up digital initiatives for small businesses. Tamil Nadu has been a frontrunner in industrial policy, and this tie-up reinforces its focus on innovation-led growth.

Watch for the first set of case studies from pilot units to emerge by early next year. They will determine whether the model can be replicated in other states.