AI For MSMEs: Bridging the Gap between Technology and Business Goals
Keywords:
Artificial Intelligence, MSME SectorAbstract
This paper explores the transformative effect of Artificial Intelligence on Micro, Small, and Medium Enterprises (MSMEs), emphasizing how AI and related technologies are bridging the gap among conventional business practices and modern technological advancements. With increasing competitive pressures and operational challenges, MSMEs are adopting AI to automate routine tasks, enhance decision-making, and optimize business processes. Approximately 45% of Indian MSMEs have integrated some form of AI, reflecting a growing awareness of its strategic value. Despite this, widespread adoption remains limited due to financial constraints, technological complexity, and a reliance on outdated systems. The paper finds the need for organizational, technological, and environmental readiness to facilitate AI implementation. Additionally, it discusses the broader economic implications of AI, including its effects on employment, inequality, and market dynamics, as well as the role of dictatorial frameworks in guiding its adoption.
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