The impact of financial modelling on the adaptability of machine learning (ML) and artificial intelligence (AI) in Indian manufacturing sectors is examined in this study. The study explores how financial concerns impact the adoption, use, and realization of AI/ML benefits in order to plug the knowledge gaps in the body of existing work. The study examines the relationship between financing availability, financial resources, and AI/ML adaptability. The research explores the potential, financial challenges, and strategic implications for manufacturing in India. Knowledge of AI/ML application in Indian industry is advanced by the study, which aids in financial resource allocation and investment prioritization. The findings from the research have important ramifications for the sustainability and competitiveness of India’s manufacturing sectors in the era of Industry 4.0. The recommendations help people make well-informed decisions, and encourage the use of AI/ML and the growth of businesses. This research addresses critical questions like how financial modelling impact AI/ML adaptability in Indian manufacturing MSMEs, lists out the key financial modelling factors influencing AI/ML adaptability, how MSMEs leverage financial modelling to enhance AI/ML adaptability, The changes in the Indian manufacturing sector undergo before and after implementing AI/ML and to create a sustainable financial model to adopt AI/ML in business process. The study’s contributions include Empirical evidence on the impact of financial modelling on AI/ML adaptability, Strategic recommendations for MSME’s and policymakers and A framework for optimizing financial strategies and creating other business models.