Abstract
Developing digital marketing strategies based on artificial intelligence (AI) is becoming increasingly important for micro, small and medium enterprises (MSMEs) to compete in the digital economy era. This research aims to analyze the application of AI in digital marketing strategies that can be adopted by MSMEs to increase competitiveness, marketing effectiveness and overall business performance. This study uses a case study approach and literature review to investigate how AI technologies such as data analysis, content personalization, and advertising automation can be integrated into MSMEs' digital marketing practices. The study shows that the application of AI can provide competitive advantages, especially in terms of more accurate market segmentation, advertising cost efficiency, and increased customer engagement and satisfaction. However, this study also found that the main challenges in implementing AI in MSMEs are the limited human resources who understand the technology and the relatively high initial investment. Therefore, so that MSMEs can realize the maximum potential of digital marketing in the era of the digital economy, increased support is needed in the form of training and access to AI technology.
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