Authors :
Gangadhar Hugar
Volume/Issue :
Volume 10 - 2025, Issue 8 - August
Google Scholar :
https://tinyurl.com/mrx8te5t
Scribd :
https://tinyurl.com/mryyshe6
DOI :
https://doi.org/10.38124/ijisrt/25aug644
Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.
Note : Google Scholar may take 30 to 40 days to display the article.
Abstract :
Artificial Intelligence (AI) is revolutionizing digital marketing by enabling businesses to better understand
consumer behaviour, deliver personalized content, automate campaigns, and strengthen customer engagement. While its
use is widespread among large corporations, small-scale industries (SSIs) are still in the early stages of adoption, largely
due to budgetary, technical, and skill-related limitations. This study explores the potential of AI applications—such as
chatbots, predictive analytics, recommendation engines, sentiment analysis, and programmatic advertising—in enhancing
marketing efficiency, precision targeting, and overall competitiveness within SSIs. Employing a mixed-methods research
design, the analysis draws on survey data from 50 micro and small enterprises, three detailed case studies, and relevant
secondary sources to examine key adoption drivers, barriers, and performance impacts. The results indicate that AI-
powered personalization can raise conversion rates by up to 20%, while automating repetitive marketing activities
significantly reduces workload and optimizes resources. The paper offers practical, cost-effective strategies for AI
integration, skill enhancement, and policy measures to accelerate adoption in the SSI sector.
Keywords :
Artificial Intelligence, Digital Marketing, Small-Scale Industries, Automation, Chatbots, Predictive Analytics, Personalization, Customer Engagement, Return on Investment (ROI).
References :
- Chaffey, D., & Patron, M. (2020). Exploring the opportunities and challenges of artificial intelligence in marketing. Journal of Digital Strategy, 4(2), 45–60.
- Chaffey, D. (2020). Digital marketing: Strategy, implementation, and practice. Pearson Education.
- Chatterjee, S., Rana, N. P., & Dwivedi, Y. K. (2021). Insights into AI adoption among small and medium enterprises. Journal of Business Research, 124, 85–98.
- Davenport, T., & Ronanki, R. (2018). Practical applications of artificial intelligence in business. Harvard Business Review. https://hbr.org/2018/01/artificial-intelligence-for-the-real-world
- Dwivedi, Y. K., et al. (2021). Setting the research agenda for artificial intelligence in marketing. International Journal of Information Management, 57, 102264.
- Kaplan, A., & Haenlein, M. (2019). Assessing virtual assistants: Who really holds the crown? Business Horizons, 62(1), 15–25.
- Kumar, R., & Sharma, P. (2021). A review of AI adoption trends in SMEs. International Journal of Small Business Management, 38(1), 78–95.
- Lee, S., & Park, J. (2019). Evaluating the role of chatbots in enhancing customer service. Asia-Pacific Journal of Marketing, 11(3), 112–130.
- Marr, B. (2021). Applications of artificial intelligence in practice. Wiley.
- McKinsey & Company. (2022). Overview of the state of AI adoption in 2022. https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/global-survey-the-state-of-ai-in-2022
- Statista. (2023). Worldwide AI adoption rates among small businesses. https://www.statista.com/statistics/ai-adoption-small-businesses
Artificial Intelligence (AI) is revolutionizing digital marketing by enabling businesses to better understand
consumer behaviour, deliver personalized content, automate campaigns, and strengthen customer engagement. While its
use is widespread among large corporations, small-scale industries (SSIs) are still in the early stages of adoption, largely
due to budgetary, technical, and skill-related limitations. This study explores the potential of AI applications—such as
chatbots, predictive analytics, recommendation engines, sentiment analysis, and programmatic advertising—in enhancing
marketing efficiency, precision targeting, and overall competitiveness within SSIs. Employing a mixed-methods research
design, the analysis draws on survey data from 50 micro and small enterprises, three detailed case studies, and relevant
secondary sources to examine key adoption drivers, barriers, and performance impacts. The results indicate that AI-
powered personalization can raise conversion rates by up to 20%, while automating repetitive marketing activities
significantly reduces workload and optimizes resources. The paper offers practical, cost-effective strategies for AI
integration, skill enhancement, and policy measures to accelerate adoption in the SSI sector.
Keywords :
Artificial Intelligence, Digital Marketing, Small-Scale Industries, Automation, Chatbots, Predictive Analytics, Personalization, Customer Engagement, Return on Investment (ROI).