Application Cases of Artificial Intelligence (AI) in Micro, Small, and Medium-Sized Enterprises

Artificial Intelligence (AI) offers significant potential for the Micro, Small and Medium Enterprises (MSMEs) that drive economies in the Global South, yet its adoption remains low due to systemic barriers. This study explores how AI can be used effectively by these enterprises. Through qualitative analysis of 15 MSMEs across diverse sectors, key adoption strategies, challenges and opportunities were identified. The study's primary contribution is the AI Preparedness and Provision (AIPP) Framework. This model posits that successful adoption hinges on the synergy between two dimensions: a firm's internal AI Preparedness (strategic intent, capacity building, agile adoption, and collaboration) and the Ecosystem Provision of external support (financial, knowledge, contextual, regulations, and infrastructure). The AIPP framework provides a practical guide for both MSMEs and policymakers to bridge the gap between aspiration and action, enabling sustainable AI-driven growth across the Global South.