AI-Driven Digitalization as a Catalyst for Women Entrepreneurship

The paper investigates the effect of AI-based digitalization on the business performance of the female entrepreneur registered under the MSME in semi-urban Dharwad, Karnataka. It examines the information about the respondents (200 respondents), based on which it draws conclusions about the benefits of digital tools, like mobile payments, AI-driven marketing, and automation in terms of profitability, reach to customers, and efficiency. Correlation, regression analysis, t-tests, chi-square, and ANOVA are useful tools of statistical analysis which show that digital adoption has a significant positive impact on business. In addition, demographic factors such as education and experience determine the degree of utilization of digital tools. Overall, the performance of women who received digital training was very high as compared to women who had no training. The evidence sheds light on digitalization being a real driver, significantly empowering women entrepreneurs not only in the urban areas, but also in achieving inclusive economic growth. According to the study, special policies, the enhancement of digital training, and infrastructure development should be taken to facilitate broader integration of AI. Such understanding is of practical use to policy makers, support agencies and entrepreneurs who want to succeed in the onset of business environment that is going digital.