<![CDATA[Digital transformation encourages MSMEs to develop adaptive business models through the use of artificial intelligence, but its implementation still faces limitations in knowledge, resources, and organizational readiness. This research aims to analyze the process of integrating artificial intelligence in the development of MSME business models and its implications for efficiency, service innovation, and competitiveness. The research uses a qualitative approach with a case study design. Data were collected through semi-structured interviews with 15 informants consisting of MSME actors, business assistants, and technology practitioners, and analyzed using thematic analysis. The results show that artificial intelligence supports operational automation, marketing personalization, and data-driven decision-making. The study concludes that the success of artificial intelligence-based business model development is determined by digital literacy, resource readiness, and gradual implementation strategies]]>
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