Exploring AI Adoption for Digital Legal Compliance in MSMEs: A Qualitative Study from Karanganyar Regency, Indonesia

Marina Ramadhani; Arseto Endro Supriyanto; Yayu Sri Rahayu

doi:10.56741/IISTR.jmsd.001576

Authors

Marina Ramadhani
marinaramadhani80@gmail.com
Universitas Muhammadiyah Karanganyar https://orcid.org/0009-0000-1926-9390
Arseto Endro Supriyanto Universitas Muhammadiyah Karanganyar
Yayu Sri Rahayu Universitas Muhammadiyah Karanganyar https://orcid.org/0009-0001-5313-7620

DOI:

https://doi.org/10.56741/IISTR.jmsd.001576

Keywords:

Artificial Intelligence, Digital Legal Compliance, MSMEs, Regulation

Abstract

This study aims to explore the challenges and opportunities of applying Artificial Intelligence (AI) in supporting digital legal compliance among MSMEs in Karanganyar Regency, Indonesia. Using a qualitative approach based on in-depth interviews with MSME actors, technology practitioners, and legal experts, the research findings grouped the main issues into eight themes: low understanding of digital regulations, limited resources, perception of legal sanctions, regulatory fragmentation, the potential of AI for real-time monitoring, technical implementation challenges, consumer trust and privacy issues, and the role of local government in policy intervention. The analysis shows that although AI offers potential solutions to improve compliance, its implementation is still hampered by technical, cultural, and institutional factors. This study concludes that the successful application of AI to SMEs' digital legal compliance is highly dependent on institutional support and affirmative local policies.

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Author Biographies

Marina Ramadhani, Universitas Muhammadiyah Karanganyar

is a lecturer in Business Law at Muhammadiyah University of Karanganyar. She earned her Bachelor of Laws degree from Sriwijaya University, Palembang, and her Master of Laws in Business Law from Gadjah Mada University, Yogyakarta. Her expertise lies in Business Law, particularly Intellectual Property Rights. She has been actively involved in legal research and academic activities related to digital law and regulatory compliance. (email: marinaramadhani80@gmail.com).

Arseto Endro Supriyanto, Universitas Muhammadiyah Karanganyar

is a lecturer in Business Law at Muhammadiyah University of Karanganyar. He holds a Master of Laws degree with a concentration in Business Law from Sebelas Maret University. His academic and professional expertise includes business law, energy law, and mining law. He has contributed to research and teaching in the legal aspects of industry and natural resources governance. (email: supriyantoendroseto@gmail.com).

Yayu Sri Rahayu, Universitas Muhammadiyah Karanganyar

is a lecturer in Computer Engineering at Muhammadiyah University of Karanganyar. She obtained her Master’s degree in Computer Science from Gadjah Mada University. Her expertise includes database systems, programming, and decision support systems. She has extensive experience in applying information technology to solve practical problems and support organizational decision-making processes. (email: rahayu1972@gmail.com).

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