IRMA-International.org: Creator of Knowledge
Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Role of AI in MSMEs and Its Impact on Financial Performance and Business Sustainability

Role of AI in MSMEs and Its Impact on Financial Performance and Business Sustainability
View Sample PDF
Author(s): Neba Bhalla (School of Business, University of Petroleum and Energy Studies, Dehradun, India)
Copyright: 2025
Pages: 14
Source title: Diversity, AI, and Sustainability for Financial Growth
Source Author(s)/Editor(s): Huibrecht Margaretha van der Poll (University of South Africa, South Africa), John Andrew van der Poll (University of South Africa, South Africa)and Collins Chigaemecha Ngwakwe (University of Limpopo, South Africa)
DOI: 10.4018/979-8-3693-6011-8.ch013

Purchase

View Role of AI in MSMEs and Its Impact on Financial Performance and Business Sustainability on the publisher's website for pricing and purchasing information.

Abstract

The book chapter is a deep dive into the revolutionary impact of artificial intelligence (AI) technologies on many small and medium-sized businesses (SMEs) elements. Through a series of case studies, it examines how AI-driven solutions are not just transforming but revolutionizing critical areas of the SME sector, including credit scoring, inventory management, marketing campaigns, and fraud detection. It's not a question of if SMEs should adopt AI, but when and how. The chapter delves into the practical application of automated credit scoring for small firms. It showcases how AI algorithms can efficiently analyze large datasets to quickly and accurately assess creditworthiness, thereby enabling SMEs to easily access crucial financial resources. Shifting the focus to retail, the chapter explores AI-powered inventory management systems, illustrating how machine learning algorithms can optimize stock levels, reduce costs, and enhance customer satisfaction by ensuring products are always available when needed. The chapter also explores personalized marketing campaigns for e-commerce SMEs, illustrating how AI algorithms can analyze customer behavior and preferences to create targeted and effective marketing strategies, leading to increased sales and engagement. Lastly, the chapter addresses the critical issue of fraud detection and prevention in financial services SMEs. It demonstrates how advanced AI technologies, such as anomaly detection and predictive analytics, can quickly identify fraudulent activities, safeguarding businesses and customers. Through these compelling case studies, the chapter underscores the immense potential of AI in empowering SMEs to achieve operational efficiency, financial stability, and competitive advantage in the ever-evolving business landscape. However, it's important to consider the ethical implications of using AI in SMEs. These include specific ethical implications, which need to be carefully addressed. This reiteration of AI's potential serves as a powerful reminder of the transformative role it can play in the success of SMEs but also highlights the need for a responsible and ethical approach to its adoption.

Related Content

Frederic Andres. © 2027. 14 pages.
Kalsoom Safdar, Khairul Najmy Abdul Rani, Mohd Aminudin Jamlos, Siti Julia Rosli, Muhammad Usman Younus, Zanab Safdar. © 2027. 27 pages.
Bani Adam, Binastya Anggara Sekti, Muhammad Adi Zacky Zahran. © 2027. 24 pages.
Swetha Margaret T. A., Renuka Devi D.. © 2027. 31 pages.
Maurice Saluschke, Michael Schulz. © 2027. 30 pages.
Mirjam Sepesy Maučec, Gregor Donaj. © 2027. 16 pages.
Jorge A. Ruiz-Vanoye, Ocotlan Diaz-Parra, Ricardo A. Barrera-Cámara, Alejandro Fuentes-Penna, Francisco R. Trejo-Macotela, Jaime Aguilar-Ortiz, Eric Simancas-Acevedo. © 2027. 21 pages.
Body Bottom