LEVERAGING ARTIFICIAL INTELLIGENCE (AI) TECHNOLOGY TO IMPROVE BUSINESS PERFORMANCE AND BUSINESS SUSTAINABILITY IN MSMEs

Abstract

Current advancements indicate an accelerated proliferation of artificial intelligence (AI) technology. However, its adoption remains limited within many Micro, Small, and Medium Enterprises (MSMEs), hindering potential business advancement. MSME proprietors often perceive AI as primarily applicable to technology-qualified industries and creative or digital-native businesses. Empirical observation within the West Jakarta region, specifically Meruya Utara, reveals a persistence of traditional business methodologies among local MSMEs. This is characterized by an underutilization of effective digital internet technologies. Presently, the digital engagement of these entrepreneurs is largely confined to foundational applications, such as product promotion via SMS or basic social media platforms (e.g., Facebook, Instagram, WhatsApp). This limited adoption stems from constraints in both technological knowledge and human resource capacity for managing digital business operations. In response to this identified gap, universities, as educational institutions bearing a community responsibility, are positioned to provide solutions. Proposed interventions include delivering targeted training programs to MSME partner communities. These initiatives aim to enhance digital literacy, deepen understanding of sophisticated technologies, and build practical skills in AI utilization. Furthermore, universities can assist in facilitating the effective implementation of AI technology within these businesses. The anticipated outcomes encompass catalyzing innovation in product development and marketing strategies, ultimately leading to increased sales and contributing to long-term business sustainability.