Frans Sudirjo

Type of the article: Research Article

Abstract
This study examines the associations between AI adoption, content creativity, message personalization, customer engagement, and perceived sales growth among MSMEs in Semarang, Indonesia. Drawing on the Technology Acceptance Model (TAM) and Customer Engagement Theory (CET), the study investigates whether customer engagement mediates the relationships between AI-driven marketing practices and business performance outcomes. A quantitative approach was employed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. Data were collected from 120 MSME owners and managers who reported using ChatGPT or other AI-based marketing tools. The findings indicate that AI adoption and content creativity are positively associated with customer engagement, whereas message personalization shows no significant association with customer engagement. Customer engagement is positively associated with perceived sales growth. Furthermore, customer engagement significantly mediates the association between AI adoption and perceived sales growth. However, the indirect associations of content creativity and message personalization with perceived sales growth through customer engagement are not statistically significant. These findings suggest that the benefits of AI adoption for MSMEs are primarily realized through stronger customer engagement rather than through a direct association with sales outcomes. This study contributes to the growing literature on AI-assisted marketing in MSMEs and highlights the importance of customer engagement as a mechanism linking AI adoption and perceived business performance.

Acknowledgment
The author would like to thank all survey participants who took the time to share information and advice, contributing significantly to the success of this study.