Abstract
<jats:p>This chapter explores the barriers to AI adoption faced by Micro, Small, and Medium Enterprises (MSMEs) due to cost and accessibility challenges. While AI presents significant opportunities for enhancing productivity, customer experience, and competitiveness, MSMEs often struggle with the financial burden of implementation, lack of technical infrastructure, and a shortage of skilled labor. The chapter provides a detailed analysis of the cost factors involved in AI adoption, including initial investment, ongoing maintenance, and hidden expenses. It also outlines strategies to overcome these barriers, such as leveraging cloud-based solutions, AI-as-a-Service, government support, and open-source tools. Financial models, such as subscription-based pricing and co-investment opportunities, are also explored to make AI more accessible and affordable. The chapter concludes with a look at future trends, emphasizing technological advancements that will further reduce the cost and complexity of AI for micro and small enterprises (MSMEs).</jats:p>