INTERNATIONAL JOURNAL FOR INNOVATIVE RESEARCH IN MULTIDISCIPLINARY FIELD

Abstract:   The integration of artificial intelligence into accounting practices represents one of the more fascinating shifts happening in India's micro-enterprise sector right now. This review examines how AI technologies are reshaping traditional bookkeeping, financial reporting, and compliance management in small-scale businesses across India. Drawing from eighteen peer-reviewed sources, the paper analyzes the adoption patterns, operational benefits, and implementation challenges that micro enterprises face when incorporating AI-driven accounting solutions. What emerges is a somewhat contradictory picture: while AI promises unprecedented efficiency and accuracy, many micro enterprises struggle with infrastructure limitations, skill gaps, and cost constraints. The Indian context adds another layer of complexity—regulatory frameworks designed for larger corporations don't always translate smoothly to smaller operations, and the digital divide between urban and rural areas creates uneven adoption rates. Findings suggest that successful AI implementation in micro enterprises depends less on technological sophistication and more on gradual, context-appropriate integration that respects existing workflows. The review also highlights how strategic management approaches and change management methodologies influence technology adoption outcomes. For policymakers and practitioners, this analysis offers insights into creating supportive ecosystems that enable micro enterprises to harness AI's potential without being overwhelmed by its demands.