This study aims to analyze the role of AI as an enabler of digital economic transformation and synthesize the mechanisms linking AI utilization with sustainable MSME development. The study employs a qualitative literature review approach with descriptive-thematic analysis. The literature was obtained from Google Scholar, Scopus, Web of Science, and academic publisher platforms, covering publications from 2019 to 2026. Of the 50 articles identified, 25 articles were selected based on relevance, publication quality, topic alignment, and availability of information for the final synthesis. The findings indicate that AI serves as an enabling technology that strengthens digital transformation through automation, data analysis, prediction, personalization, and decision-making support. These capabilities enhance efficiency and innovation, which subsequently strengthen adaptability, competitiveness, and resilience while contributing to economic, social, and environmental sustainability. The benefits of AI depend on AI literacy, human resources, organizational readiness, infrastructure, data quality, and responsible governance. This study emphasizes that AI is an organizational capability enabler that can support long-term value creation and MSME sustainability.
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