Designing a Digital Human AI Management Framework for MSME Growth in India and Emerging Asian Economies

Abstract

The high rate of Artificial Intelligence (AI) adoption has drastically changed the way it is done in management and entrepreneurship, especially in the Micro, Small, and Medium Enterprise (MSME) in emerging Asian economies. This paper will discuss how management theory has evolved over time, shifting to AI-based systems, and suggest the Integrated Digital Human AI-Augmented Model (IDH-AI Model) that will describe this process. With the help of a quantitative and conceptual research design, primary data was gathered among 120 MSMEs and processed with the help of SPSS methods including descriptive analysis, correlation, and hypothesis testing. The results show that the use of AI contributes to significant increases in People efficiency (40%), financial performance (35%), and sustainability results (30%). The results of the correlational analysis show that there are strong positive correlations, especially between sustainability (r = 0.68) and people efficiency (r = 0.62), whereas hypothesis testing supports the existence of statistically significant effects in all dimensions. These findings are further supported by case-based evidence that shows that the cost reduction, demand forecasting, and energy efficiency were improved. The paper concludes that AI is a transformational driver that facilitates human-AI interaction and improves the performance of organizations on the People, Planet, and Product levels.