journal-of-information-and-optimization-sciences Journal of Information and Optimization Sciences 2169-0103 0252-2667 Taru Publications 10.47974/JIOS-2443 AI-driven digital transformation in MSMEs : Modeling adoption, readiness, and implementation challenges Modi Ronak R. Department of Business Management, Faculty of Management Studies, Smt. S. B. Patel Institute of Business Management, Sankalchand Patel University, Visnagar, Gujarat, 384315, India Modi Parth M. Department of Commerce & Management, Sevantilal Kantilal School of Business Management (SKSBM), Hemchandracharya North Gujarat University, Patan, Gujarat, 384265, India Patel Rajesh Department of Business Management, Faculty of Management Studies, Sankalchand Patel College of Engineering, Sankalchand Patel University, Visnagar, Gujarat, 384315, India Patel Chirag Rasikbhai Department of Business Management, Faculty of Management Studies, Sankalchand Patel College of Engineering, Sankalchand Patel University, Visnagar, Gujarat, 384315, India Thakor Miteshkumar Babuji Department of Business Management, Faculty of Management Studies, Smt. S. B. Patel Institute of Business Management, Sankalchand Patel University, Visnagar, Gujarat, 384315, India 47 9-B 3463 3472 30 09 2026

Artificial Intelligence (AI) can improve MSME efficiency, productivity, and decision-making. However, AI adoption among Indian MSMEs remains limited due to low awareness and implementation challenges. This study examines AI adoption in Gujarat’s MSMEs, focusing on AI awareness, perceived benefits, and adoption challenges. Using a quantitative approach, data were collected from MSME owners and managers through structured questionnaires and analysed using descriptive statistics and Structural Equation Modeling (SEM). The study provides empirical insights into AI adoption factors and offers implications for policymakers, business leaders, and technology providers to support effective AI integration and overcome adoption barriers.

 Artificial intelligence MSMEs Awareness Perceived benefits Adoption challenges access open retracted no