Artificial Intelligence (AI) has become increasingly relevant to digital entrepreneurship and the development of Micro, Small, and Medium Enterprises (MSMEs). This study aims to examine the opportunities and challenges of AI in supporting digital entrepreneurship and MSME development in Indonesia. This study uses a literature review approach by analyzing relevant scientific publications concerning AI adoption, organizational readiness, digital marketing, digital branding, innovation, business value, firm performance, and implementation challenges. The findings indicate that AI provides opportunities for MSMEs to improve marketing, digital branding, operational efficiency, innovation, competitiveness, and business growth. However, AI adoption is influenced by organizational readiness, financial resources, digital literacy, technical skills, training, and external support. Ethical considerations and responsible AI use are also important in the implementation of AI in business activities. The study concludes that maximizing the contribution of AI to MSME development requires the integration of technological adoption with organizational capabilities, human resources, external support, and responsible implementation.
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