The Role of Generative AI in the Digital Transformation of MSMEs: A Literature Review of Opportunities, Challenges, and Future Research Directions

Sutrisno

doi:10.61100/tacit.v3i3.409

Authors

Sutrisno Universitas PGRI Semarang

DOI:

https://doi.org/10.61100/tacit.v3i3.409

Keywords:

Generative AI, Digital Transformation, MSMEs, Organizational Capabilities, Technology Adoption

Abstract

This study examines the role of generative artificial intelligence (GenAI) in the digital transformation of micro, small, and medium enterprises (MSMEs), focusing on opportunities, implementation challenges, and future research directions. Using an integrative literature review, the study synthesizes theoretical perspectives and empirical findings concerning AI adoption, organizational capabilities, business process integration, and performance. The findings indicate that generative AI can improve operational efficiency, marketing activities, customer communication, and innovation. However, technology adoption does not automatically produce meaningful digital transformation. Its contribution depends on employee competencies, managerial readiness, technological infrastructure, and responsible AI governance. By integrating the Technology–Organization–Environment framework, Resource-Based View, and dynamic capabilities perspective, this study proposes a conceptual framework linking AI adoption with organizational capabilities, process integration, and transformation outcomes. The findings emphasize that sustainable business value requires strategic technology integration rather than occasional AI use, particularly among resource-constrained MSMEs operating in increasingly competitive digital markets.

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