Analysis of the Influence of Using AI Technology on Micro-Scale MSMEs on Digital Marketing

The development of artificial intelligence (AI) technology has brought significant changes in various sectors, including micro, small and medium enterprises (MSMEs). Micro- scale MSMEs that have limited resources have begun to utilize digital technology to support marketing effectiveness. This study aims to analyze the effect of using AI technology, digital literacy, and social media utilization on digital marketing in micro-scale MSMEs. This research uses a quantitative approach with a questionnaire survey method involving owners and managers of micro-scale MSMEs who have used digital technology in their marketing strategies. The data analysis technique used is multiple linear regression to determine the effect of each independent variable on the dependent variable. The results showed that the three independent variables simultaneously had a significant effect on digital marketing of MSMEs. Partially, digital literacy has the most dominant influence on the effectiveness of digital marketing strategies and customer engagement. Meanwhile, the use of AI technology and social media utilization also play an important role in encouraging the adaptability of MSME players to technology. Nevertheless, there are still obstacles such as low understanding of technology, implementation costs, and resistance to change. This study recommends the importance of knowledge training in the adoption of digital technology through social media supported by AI technology for MSMEs so that digital marketing can run optimally.