This report examines what is required for micro, small and medium-sized enterprises and innovative start-ups in developing countries to seize the potential of artificial intelligence (AI) and the distinct barriers they face. Drawing on UNCTAD Entrepreneurship Policy Framework, it touches upon best practices for governments to strengthen entrepreneurship ecosystems, ensuring smaller enterprises and start-ups can fully benefit from the new technological wave while acknowledging risks and challenges. It highlights updated business development services, including AI-focused training offered through, for instance, UNCTAD’s global Empretec network, designed to equip entrepreneurs for AI adoption. This publication is informed by an extensive literature review and a broad range of stakeholder consultations, including representatives from international organizations, government bodies, business development centres, the private sector, not-for-profit organizations, investors, academia, business and AI specialists, and entrepreneurs.