The following study aims to analyze how the integration of AI affects the performance of microbusinesses. Survey questionnaires and interviews were used to gather data from micro business owners. Outcomes show that the use of Artificial Intelligence enhances operational performance, customer satisfaction, and organizational performance. At the same time, the result of the study reveals how AI technologies can significantly impact and improve the competence and strategic position of micro businesses. The results outlined above are useful for micro companies that intend to implement AI and present useful suggestions on how to use AI to generate sustainable growth and innovation. Thus, with the help of this research, a gap in the literature on AI's influence on micro business operations and performance is filled.