AI-DRIVEN AUTOMATION IN SMALL ENTERPRISES: ECONOMIC EFFICIENCY AND TRANSFORMATION OF BUSINESS PROCESSES IN EMERGING MARKETS (CASE OF UZBEKISTAN)

Small enterprises in emerging markets are increasingly turning to artificial intelligence (AI) to streamline operations, reduce costs, and strengthen competitiveness. However, the economic impact and practical outcomes of AI-driven automation in such environments remain understudied. This paper examines how AI-based tools and workflow automation influence the efficiency, decision-making quality, and transformation of business processes in small enterprises, with a particular focus on Uzbekistan. Using a mixed approach—combining comparative analysis, firm-level interviews, and recent data from the World Bank, OECD, and the Ministry of Digital Technologies of Uzbekistan—the study evaluates both measurable economic gains and organizational challenges. The findings reveal that AI adoption can raise operational efficiency by 15–35% among small firms, primarily through improved inventory management, customer analytics, and administrative automation. At the same time, skill gaps, integration costs, and data reliability issues remain major barriers. The results provide practical insights for policymakers and entrepreneurs seeking to scale AI adoption in developing economies and outline strategic priorities for building an innovation-driven small-business ecosystem.