ABSTRACT
In accordance with Confederation of Indian Industries (CII), micro, small and medium-sized enterprises (MSMEs) currently account for about 6% of the GDP in the manufacturing sector and 24% of the GDP in the service sector. By looking at Catgut's potential to boost online marketing and upgrade to AI, MSMEs have a great chance to interact with potential customers, enhance customer relationships and supply chain management, productivity and efficiently maximize their overall operation, meanwhile MSMEs facing challenges to introduce and practice AI in their day to day operations. Hence the study aims on to assess how AI may improve MSME resilience, sustainability and look at the obstacles that MSMEs face when implementing AI for sustainable practices. The respondents of the study consisted of people who took entrepreneurship as their profession and involve in startups at different levels in different part of Bengaluru city of Karnataka, India, The Research was undertaken involving a sample size of 120 purposive samples through questionnaire and informal interview. The primary data underwent analysis through infernal statistics such as KMO and Bartlett's Test, Principal Component Analysis, One-Sample Test used to check the hypothesis. There is an urgent call exists for specific, strategic interventions such as improved access to funding, affordable technological solutions, and infrastructure upgrades. Overall, this study underscores the multifaceted nature of challenges faced by MSMEs. Policymakers, industry leaders, and stake holders must adopt a holistic approach, combining financial support, capacity building, and technological enablement, to empower MSMEs in leveraging AI-Powered Pathways to Sustainable Development. By addressing the challenges comprehensively, MSMEs can leverage AI not only for sustainable practices but also for achieving broader competitive and operational benefits.
