Bungo Regency in Jambi is one of Indonesia’s major palm oil-producing areas, offering great potential for local micro, small, and medium enterprises (MSMEs) to create value-added palm oil derivative products. However, many enterprises face significant challenges-limited technological access, restricted market reach, and low production efficiency. This study examines how artificial intelligence (AI) can help address these challenges and unlock new economic opportunities for local micro and small enterprises (MSMEs). Drawing on recent literature from 2020 to 2024, this paper investigates the practical applications of AI tools, including predictive analytics, automated quality control, and decision support systems, to enhance productivity and competitiveness. The study applies the Technology Acceptance Model (TAM) to understand how micro and small enterprises (MSMEs) accept and utilize these tools. It also integrates Empowerment Theory to explore how digital solutions can build local capacity and promote economic independence. Findings suggest that AI does not have to be expensive or complicated to make a difference. Technologies that are accessible-like basic forecasting tools in Excel or community-based resource planning systems-can have a considerable impact when they are powered by and tailored to local needs. Our research highlights that AI can be a game-changer for rural development in the context of the Sustainable Development Goals (SDGs) if implemented inclusively and sustainably. We conclude this paper by identifying key research gaps and offering actionable recommendations.

Link: The Role of AI in Supporting Local MSMEs in Palm Oil Derivatives