AI-BASED DIGITAL MARKETING STRATEGIES AND THEIR IMPACT ON SME GROWTH: A STRATEGIC ANALYSIS

Abstract

Artificial Intelligence (AI) is transforming digital marketing practices and significantly influencing the growth of Small and Medium Enterprises (SMEs). The purpose of this study is to examine the impact of AI-based digital marketing strategies on SME growth, with a focus on strategic applications, performance outcomes, and business competitiveness. The introduction highlights the increasing adoption of AI tools such as predictive analytics, chatbots, recommendation systems, and automated advertising, which enable SMEs to improve customer targeting and operational efficiency. A qualitative research approach is adopted, relying on secondary data from academic literature, industry reports, and case studies to analyze how AI-driven marketing strategies contribute to business expansion and customer engagement. The findings indicate that AI enhances decision-making, personalization, and marketing efficiency, leading to improved revenue and market reach for SMEs. The conclusion emphasizes that AI is a critical enabler of SME competitiveness. The study recommends adopting affordable AI tools, improving digital skills, and ensuring ethical data usage for sustainable growth.