For most small and medium enterprise (SME) promoters, a visit to an IIT campus is not part of the business plan. Yet over the past year, dozens of entrepreneurs have traded factory floors and boardrooms for classrooms at some of India’s premier engineering institutions.
The initiative is part of Kotak Mahindra Bank’s effort to go beyond lending and help entrepreneurs prepare for the next phase of business transformation driven by artificial intelligence.
Every two to three months, around 40 SME promoters gather at an IIT campus for a two-day immersive workshop focused entirely on AI and its business applications. Conducted exclusively by IIT professors, the programme is designed to help business owners understand how emerging technologies could disrupt industries, alter customer behaviour and create new growth opportunities. The participants stay on campus, interact directly with faculty and discuss real-world business challenges.
The programme began in October 2025 as an experiment. Since then, workshops have been conducted at IIT Madras, IIT Bombay, IIT Delhi, IIT Ropar and IIT Gandhinagar, with the next session scheduled at IIT Indore.
What sets the initiative apart is its focus on live business cases. Ahead of each workshop, promoters share details about their businesses and challenges. IIT faculty then analyse selected companies and demonstrate how AI could potentially reshape their operations.
One of the examples discussed involved a leading manufacturer of mattresses and foam products. Faculty explored how AI-enabled sleep monitoring technologies could influence future consumer preferences, helping the promoter anticipate demand for customised bedding products. According to the Bank, the entrepreneur subsequently incorporated some of those insights into the business and saw stronger traction in European markets.
Another case involved a content production company working with streaming platforms such as Netflix and Amazon Prime Video. Professors demonstrated how generative AI tools could significantly reduce script development and content creation timelines. Tasks that traditionally took weeks could potentially be compressed into hours, creating opportunities for faster execution and lower production costs.
A third example centred on a major exporter of jute and jumbo bags. Faculty illustrated how AI-based quality assessment and compliance tools could help meet stricter international standards, opening doors to higher-value export markets.
For Shekhar Bhandari, Head-SME at Kotak Mahindra Bank, the objective is not merely technology adoption but helping entrepreneurs think ahead of their industries. Funding is something every bank can provide. The bigger challenge is helping customers run their businesses more efficiently and prepare for the future,” he said.
The response has encouraged the bank to deepen its commitment. What started as a pilot project has evolved into a structured engagement platform for SME customers. Encouraged by participation levels and feedback from entrepreneurs, Kotak has already committed to continuing the IIT initiative for at least another 18 months, betting that knowledge and capability-building can become as important to SME growth as access to capital.
Published on October 6, 2026
