<![CDATA[This study examines the effect of AI-assisted marketing on the promotional effectiveness of Micro, Small, and Medium Enterprises (MSMEs), with digital marketing capability as a mediating variable in Dalu 10B Village, Indonesia. A quantitative research approach was employed, involving 100 MSME owners or managers who were directly engaged in marketing activities and had experience using digital media for promotion. Purposive sampling is the proposed sampling technique based on these respondent criteria and should be confirmed against the actual sampling procedure. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS. The results indicate that AI-assisted marketing has a positive and significant effect on digital marketing capability (β = 0.520, t = 6.842, p < 0.001). Digital marketing capability also positively and significantly affects promotional effectiveness (β = 0.410, t = 4.927, p < 0.001). Furthermore, AI-assisted marketing has a positive and significant direct effect on promotional effectiveness (β = 0.270, t = 2.981, p = 0.003). The model explains 39.0% of the variance in promotional effectiveness (R² = 0.390). These findings indicate that AI-assisted marketing contributes to promotional effectiveness both directly and through its positive relationship with digital marketing capability. The study highlights the importance of integrating artificial intelligence into digital marketing practices to strengthen MSME promotional activities. However, the statistical significance of the mediating effect requires confirmation through bootstrapping of the indirect path.]]>
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