This study examines the relationship between AI adoption and the competitive advantage of MSMEs in Anambra State, using the Resource-Based View (RBV) theory. A survey of 301 MSMEs revealed that AI-driven tools; such as data-driven targeted online adverts, social media engagement, and chatbots, positively impact lead generation, customer reach, and relationship management. Key findings show statistically significant relationships between AI usage and competitive advantage (p