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Empowering Small Businesses in India Through Digital Transformation: the Role of Ai and Data-driven Insights

Year: 2025

Type: article

Abstract: Adopting digital transformation has become a crucial strategy for Indian small businesses seeking toenhance customer engagement, competitiveness, and operational efficiency. This study examines how digital toolsand artificial intelligence (AI) are driving the desired change. Through an analysis of data gathered from 500 smallfirms across various industries, the study identifies key factors that promote, hinder, and result from digitaladoption. To extract valuable information, statistical techniques, including Factor analysis, ANOVA test anddescriptive statistics, were used. Results show that companies are using AI for predictive analytics, consumerinteraction, and inventory management. Issues like financial limitations and a lack of computer knowledge arebrought to light. To close the digital divide, the report emphasises the need for capacity-building programs andgovernment support.

Source: Lex localis - Journal of Local Self-Government

DOI: 10.52152/802001

Author: Dr. G.R.Gayathiri .

Institution: SASTRA University

Language: English

Topic: Digital Innovation in Industries

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: hybrid

OpenAlex ID: W4415123199

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