Barriers and Drivers to the Adoption of Artificial Intelligence in Digital Marketing By Indian Micro, Small, and Medium Enterprises (MSMES)

This study examines the factors influencing the adoption of Artificial Intelligence (AI)-driven digital marketing solutions among Micro, Small, and Medium Enterprises (MSMEs) in India. As a major contributor to employment, innovation, and economic development, the MSME sector plays a central role in the country’s growth. Yet, the integration of advanced technologies such as AI remains uneven and shaped by multiple organisational and market conditions. The research is grounded in the Technology Acceptance Model and extends it by incorporating contextual variables relevant to MSMEs. It proposes and empirically tests a comprehensive framework in which Perceived Usefulness and Perceived Ease of Use directly shape the intention to adopt AI tools, while organisational and environmental factors influence these perceptions. A quantitative survey was conducted with 278 MSME owner-managers across India. The collected data were analysed using Structural Equation Modeling. The findings reveal that Perceived Usefulness is the strongest predictor of adoption intention. Competitive Pressure positively affects Perceived Ease of Use, indicating that market competition pushes firms to overcome resistance and adopt new technologies more readily. Vendor Support also emerges as a significant driver of Perceived Usefulness, as effective assistance helps firms gain measurable value from AI-based tools.