The Modernization Of MSME: Investigating The Impact And Implementation Of Artificial Intelligence In The Micro, Small, And Medium Enterprises (MSME) Sector: Manufacturing Business
- IJLLR Journal
- Oct 15
- 1 min read
Akshita Choudhary, BCom LLB, Gujarat National Law University
ABSTRACT
Micro, Small, and Medium Enterprises (MSMEs) constitute a fundamental pillar of the global economy, contributing significantly to employment, particularly in India where they rank as the second-largest employer after the agricultural sector. The proliferation of Artificial Intelligence (AI) has garnered substantial attention across diverse industries. Initially perceived as a facilitator of automation, AI has since unveiled extensive potential for innovation and design. Moreover, in the era of Industry 4.0, AI has emerged as a critical enabler, transforming various industry sectors. Artificial Intelligence (AI) and Machine Learning (ML) have become focal points in the discourse surrounding Industry 4.0. The dynamic evolution of these techniques, both in academic and practical domains, promises manifold advantages for production systems, including bolstering resilience and facilitating sustainable growth.
Even amidst resource constraints, Micro, Small, and Medium Enterprises (MSMEs) are increasingly recognizing AI as a catalyst for propelling their growth trajectory. This paper undertakes an in-depth analysis of the extent of AI adoption within the MSME sector, with a specific emphasis on the manufacturing context. Furthermore, it examines the pivotal role played by government interventions in facilitating AI adoption among MSMEs. The study also offers valuable insights into the impact of AI on the performance of MSMEs, shedding light on its transformative potential within this vital economic segment.
Keywords: Micro, Small, and Medium Enterprises, Artificial Intelligence, Government interventions, Automation, Catalyst for growth
