AI Adoption in Micro, Small and Medium Enterprises (MSMEs)
B.Shanthini
Associate professor
Department of Management Studies
Kangeyam Institude of Technology, Nathakadaiyur, Tamilnadu
S.Jagan
I-MBA
Department of Management Studies
Kangeyam Institude of Technology, Nathakadaiyur, Tamilnadu
V.Pradhap
I-MBA
Department of Management Studies
Kangeyam Institude of Technology, Nathakadaiyur, Tamilnadu
Abstract
Artificial Intelligence (AI) has emerged as a transformative force in modern business, reshaping how organizations design and implement marketing strategies. While large enterprises have been early adopters of AI-driven marketing solutions, Micro, Small and Medium Enterprises (MSMEs) are increasingly exploring AI to enhance competitiveness, customer engagement, and operational efficiency. This conceptual review paper examines the adoption of Artificial Intelligence in MSMEs with specific reference to marketing strategy. The study synthesizes existing literature to understand how AI tools such as data analytics, customer relationship management systems, chatbots, personalization engines, and predictive marketing models are influencing marketing decision-making in MSMEs.The paper aims to identify key drivers, benefits, challenges, and outcomes of AI adoption in MSME marketing strategies. It highlights how AI supports market segmentation, customer targeting, demand forecasting, pricing decisions, and promotional effectiveness, even with limited resources. Despite its potential, AI adoption among MSMEs remains uneven due to factors such as high implementation costs, lack of technical expertise, data constraints, and resistance to change.Using secondary data sources including journals, reports, and academic publications, this study develops a conceptual framework linking AI adoption to marketing performance outcomes such as customer satisfaction, brand visibility, and sales growth. The review also identifies significant research gaps, particularly the lack of context-specific studies on MSMEs in developing economies. The paper concludes that AI-enabled marketing strategies can serve as a strategic enabler for MSME growth, provided appropriate policy support, training, and affordable technological solutions are made accessible.
Keywords: Artificial Intelligence, MSMEs, Marketing Strategy, Digital Transformation, Conceptual Review
