Proceedings of the 3rd International Conference on Artificial Intelligence in Economics, Finance and Management (ICAIEFM 2025)

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AI-Driven Digital Transformation in MSMEs: Evaluating Technology Readiness and Digital Entrepreneurial Self efficacy

Authors
P. S. Nisha1, 2, *, G. S. Sandhya Nair3, 4
1Part time Research Scholar, St. Joseph’s College Autonomous, Irinjalakuda, affiliated to University of Calicut, Irinjalakuda, India
2Assistant Professor of Sree Krishna College, Guruvayoor, India
3Research Supervisor, St. Joseph’s College Autonomous, Irinjalakuda, affiliated to University of Calicut, Irinjalakuda, India
4Associate Professor of Sree Vivekananda College, Kunnamkulam, India
*Corresponding author. Email: nishabijeesh1@gmail.com
Corresponding Author
P. S. Nisha
Available Online 6 November 2025.
DOI
10.2991/978-94-6463-896-7_18How to use a DOI?
Keywords
AI Usage; Digital Transformation; Digital Entrepreneurial Self efficacy
Abstract

This paper proposes to investigate how technology readiness and AI usage contribute to shaping digital entrepreneurial self-efficacy and driving digital transformation. It evaluates 2 constructs of technology readiness. The study is cross sectional nature and collected 100 responses from MSME entrepreneurs. Data were examined using descriptive statistics technique including mean standard deviation and Structural Equation Modelling The findings revealed that strong level of optimism and innovativeness are the sign of greater amount of technological readiness among MSME entrepreneurs. Moreover, MSME entrepreneurs’ high level of digital self-efficacy is the indicator of their confidence and their willingness to adopt digital technology tools such as IOT, AI, social medias etc. in their business. Finally, moderate to high level of Digital transformation exhibited that entrepreneurs are internally ready, but require external support in order to achieve full-fledged digital transformation among MSME entrepreneurs. The results highlight the significant role of AI usage, optimism, and innovativeness in enhancing digital entrepreneurial self-efficacy and facilitating digital transformation. The research emphasized the need of the collaborative efforts involving government, industry for providing targeted training, availing financial aid and develop infrastructure is crucial ensuring sustainable digital ecosystem.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 3rd International Conference on Artificial Intelligence in Economics, Finance and Management (ICAIEFM 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
6 November 2025
ISBN
978-94-6463-896-7
ISSN
2352-5428
DOI
10.2991/978-94-6463-896-7_18How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - P. S. Nisha
AU  - G. S. Sandhya Nair
PY  - 2025
DA  - 2025/11/06
TI  - AI-Driven Digital Transformation in MSMEs: Evaluating Technology Readiness and Digital Entrepreneurial Self efficacy
BT  - Proceedings of the 3rd International Conference on Artificial Intelligence in Economics, Finance and Management (ICAIEFM 2025)
PB  - Atlantis Press
SP  - 349
EP  - 370
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-896-7_18
DO  - 10.2991/978-94-6463-896-7_18
ID  - Nisha2025
ER  -