AI-Generated Hybrid Consulting Platform for Micro and Small Enterprises in Albay

Abstract This study examined the development and initial pilot implementation of an AI-generated hybrid consulting platform, combined with personalized human mentorship for micro and small enterprises in Albay, Philippines. Guided by the Resource-Based View, the Theory of Constraints, and the knowledge-based perspective of human–AI collaboration, the research sought to describe the profile of participating firms, identify the key challenges they face in marketing, operations, and finance, and use these insights to design a consulting platform tailored to their needs. A quantitative research design using descriptive statistics was employed. Data were collected through a structured online survey from thirty purposively selected registered micro and small enterprises in Albay, representing sectors such as retail, food services, creative industries, manufacturing, and professional services. The analysis combined descriptive profiling with challenge ratings and was supported by secondary sources, including academic literature and relevant government and industry reports. Findings revealed that most respondents were micro-scale, consumer-oriented businesses operating with limited capital and assets. Although many had already moved beyond the start-up stage, their operations were still shaped by informal and inconsistent systems. In marketing, business decisions were often guided by intuition rather than structured planning, with limited use of analytics and minimal diversification of marketing channels. In terms of operations, many businesses showed a “digital front, manual back” arrangement. While some online activities were present, internal processes remained largely manual, undocumented, and constrained by capacity. Financial management was another challenge, particularly in preparing formal financial statements, managing cash flow, and meeting the documentation requirements for credit applications. Despite these constraints, respondents demonstrated growing digital readiness and openness to continuous, affordable, mobile-based support. Based on these insights, the study proposes an AI-generated hybrid consulting platform that combines AI-driven diagnostics and recommendations with localized human mentorship to help micro- and small-enterprises strengthen their marketing, operational, and financial capabilities. Keywords: Micro and small enterprises, AI-generated hybrid consulting, Human–AI collaboration, Digital readiness, Business challenges.