Abstract

This chapter explores the transformative potential of Artificial Intelligence (AI) in empowering rural Small and Medium Enterprises (SMEs) to drive sustainable entrepreneurship and inclusive growth. Rural SMEs, often constrained by limited resources, infrastructure, and digital literacy, play a critical role in economic development and job creation. Through AI-driven innovations, these enterprises can overcome barriers, optimize operations, and gain a competitive edge, enabling them to thrive in increasingly competitive markets. The chapter examines key applications of AI for rural SMEs, such as market analysis, supply chain optimization, and customer engagement, while also addressing barriers like financial constraints, skill gaps, and infrastructural limitations. It offers actionable solutions, and affordable AI tools, community-driven training programs, and public-private partnerships to bridge these gaps. Real-world case studies illustrate the successful integration of AI in rural contexts, best practices for a supportive ecosystem to ensure AI contributes to rural development