This research is motivated by the challenges faced by Micro, Small, and Medium Enterprises (MSMEs) in Indonesia in adopting artificial intelligence (AI) technology to enhance sales and business sustainability. The objective of this study is to examine the impact of AI adoption on the operational efficiency and sales of MSMEs, as well as to identify the challenges encountered in implementing this technology. The research methods used include in-depth interviews with ten MSME owners and a questionnaire survey involving 50 MSME participants. The findings indicate that AI implementation, particularly through the use of chatbots and data analytics for marketing, significantly enhances operational efficiency and sales, with approximately 70% of respondents reporting increased sales. However, the study also identifies key challenges such as high implementation costs, limited technological literacy, and uneven digital infrastructure. The conclusion emphasizes the importance of support from the government and relevant institutions in providing financial incentives and training programs to encourage broader AI adoption among MSMEs.
