The Influence of AI-Powered Marketing on the Business Growth of Malaysian SMEs

Abstract

This conceptual thesis manuscript examines how AI-powered marketing may influence the business growth of Malaysian small and medium-sized enterprises (SMEs). Drawing on the resource-based view, dynamic capabilities theory and recent digital marketing literature, the paper develops a framework linking AI-enabled customer insight, personalisation, marketing automation and predictive decision-making to sales growth, customer retention, market expansion and operational efficiency. A structured literature synthesis is used because many Malaysian SMEs are still at uneven stages of AI adoption, making conceptual clarification necessary before large-scale empirical testing. The analysis suggests that AI-powered marketing can strengthen SME growth when it improves market sensing, accelerates campaign experimentation and supports more relevant customer engagement. However, the influence is conditional on data readiness, employee digital skills, owner-manager support, ethical governance and integration with existing customer relationship management practices. The paper contributes a Malaysian SME-oriented framework and research propositions that can guide future quantitative testing using survey data from SME owners and marketing managers. It also provides practical implications for SMEs seeking incremental, low-risk AI adoption and for policymakers designing digitalisation support programmes. The study concludes that AI-powered marketing should be treated not as a stand-alone technology investment but as a capability-building process that connects data, people, platforms and responsible decision-making.