Role of Artificial Intelligence (AI) in the MSME Sector

The rapid advancement of Artificial Intelligence (AI) is transforming business operations, particularly in Micro, Small, and Medium Enterprises (MSMEs). This chapter reviews existing literature on AI's role in MSME management and decision-making, emphasizing its potential to enhance productivity, automate operations, and support data-driven strategies. AI tools such as predictive analytics, customer relationship management systems, and financial forecasting software strengthen operational efficiency and promote innovation. By enabling real-time decision-making and strategic planning, AI empowers MSMEs to improve competitiveness and achieve sustainable growth. The integration of AI fosters innovation, enhances customer engagement, and contributes significantly to the modernization of MSME business practices. This chapter provides a theoretical foundation for understanding AI's transformative impact on MSME business management and decision-making processes.