Rural Development: Artificial Intelligence Integration in Village-Owned Enterprise Management

Abstract

This study investigates the potential and challenges of Artificial Intelligence (AI) implementation in Indonesian Village-Owned Enterprises (BUMDes). As technology increasingly influences economic development, understanding AI integration in rural micro-enterprises becomes crucial. Employing a qualitative approach with literature-based data, thematic analysis reveals AI's significant potential to enhance operational efficiency, data-driven decision-making, and service personalization in BUMDes. However, implementation faces substantial hurdles, including inadequate digital infrastructure, skill deficits, financial limitations, and socio-cultural factors. These findings underscore the necessity for a contextualized AI adoption approach, with technological adaptations aligned to local capacities and community values. This research contributes to rural digitalization and regional economic development literature, elucidating the complexities of advanced technology adoption in developing countries' rural contexts. Practical implications include recommendations for supportive policy development and structured capacity-building initiatives.