Amazon Ads says Indian SMBs are scaling AI-led ad creation and optimisation

Indian SMBs produced 62% more AI-tool ad creatives year on year in Q1 2026, Amazon Ads India said. In a survey of 300 B2C SME marketers, 88% said they were likely to use AI for advertising assets, while most retained human oversight of campaign decisions.

— Source publishedThu, 24 Sept, 2026, 07:55 IST·First seen Thu, 24 Sept, 2026, 08:43 IST·Source ET BrandEquity

What happened

Amazon Ads India says AI tools are expanding Indian SMBs’ ability to create, test and optimise advertising. AI-tool creative output rose 62% in Q1 2026, while

Key facts

  • Indian SMBs generated 62% more AI-tool ad creatives in Q1 2026 year on year
  • 88% of surveyed Indian SMBs are likely to use AI for advertising assets
  • 68% said AI enabled greater advertising creativity
  • 2% fully automated advertising decisions without human review
  • 40% retained business-owner final decision-making

What changed

Amazon Ads India says AI tools are expanding Indian SMBs’ ability to create, test and optimise advertising. AI-tool creative output rose 62% in Q1 2026, while surveyed SMEs reported broader channel access, faster production and continued human oversight of campaign decisions.

Why this matters

Indian SMB marketers should operationalise AI for faster ad-creative production and optimisation while retaining human review for campaign strategy and brand control.

What to watch

  • Amazon Ads reporting sustained growth in AI-generated creative adoption alongside improved conversion rates or lower cost per acquisition for Indian SMBs.
  • Year-on-year increases in sponsored-ad CPCs, cost per conversion or auction competition in consumer categories with high SMB participation.
  • Launches of Amazon Ads tools that directly connect generative creative to catalog data, audience targeting, budget allocation or multilingual asset creation.
  • Evidence that AI-generated listings and ads increase policy violations, customer-return rates, complaint rates or misleading-claim enforcement.
  • Rival retail-media platforms and Indian commerce marketplaces introducing comparable self-serve AI ad creation and optimisation tools.

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