Enhancing Business Decision-Making of Purwakarta MSMEs through AI-Based Market Analysis

Warsono sudiro (Lecturer of Politeknik Jatiluhur, Indonesia)
Suhendri (Lecturer of Politeknik Jatiluhur, Indonesia)
Arlen Nawang Rachelia Arlen (Students of Tax Accounting Departement Politeknik Jatiluhur, Indonesia)
Indri Yani Lasmini Indri (Students of Tax Accounting Departement Politeknik Jatiluhur, Indonesia)

International Journal of Community Service
Vol. 6 No. 2 (2026): May 2026 ( Indonesia - Thailand - Malaysia - Philippines)

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in economic development; however, they face increasing challenges in making effective business decisions due to rapidly evolving market dynamics. Artificial Intelligence (AI) has emerged as a strategic tool to enhance decision-making processes through data-driven insights. This study aims to analyze the effect of AI-based market analysis on decision-making quality and its impact on business performance among MSMEs in Purwakarta. A quantitative approach was employed using survey data from 165 MSME owners, analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that AI-based market analysis significantly improves decision-making quality (β = 0.66, p < 0.001), which subsequently enhances business performance (β = 0.61, p < 0.001). Furthermore, data readiness strengthens the effectiveness of AI utilization. These findings contribute to the literature on digital transformation and provide practical insights for MSMEs in adopting AI-driven strategies.