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Purpose

The rapid rise of artificial intelligence is reshaping arts and crafts businesses, unlocking exciting new strategies while also posing unique challenges. By blending traditional craftsmanship with cutting-edge AI tools such as generative design software, artisans can enhance creativity, speed up production and reach wider audiences without losing the soul of their craft complex societal implications. This study aims to explore how artisans can harness AI innovations while addressing societal impact and opportunities to preserve authenticity and navigate the evolving creative industry landscape in Sri Lanka successfully.

Design/methodology/approach

A narrative analysis technique was employed to gain a deeper understanding of societal implications. A qualitative research design was adopted, incorporating 14 semi-structured interviews, to gather primary data through a purposive sampling method. The sample represented owners and employees from the creative industry across six different districts in Sri Lanka.

Findings

Key findings revealed that artistry between societal implications and transformations examines the wider social, economic and cultural effects of integrating AI within creative communities, while balancing tradition and innovation, which examines the tensions and opportunities between conserving cultural heritage and embracing technological advancement. These findings bridge the boundaries between digital transformation and cultural heritage protection by fusing artistic theory, technological innovation and socioeconomic analysis. The study evaluates cultural identity, ethical concerns and organizational dynamics in the era of AI, moving beyond economic consequences to examine how AI is reshaping changing general work and AI is presented as a tool that opens up new potential for people and art and craft enterprises who successfully incorporate it into their business platforms, rather than just as a force that destroys jobs. However, challenges such as limited digital literacy, infrastructural gaps and concerns over cultural authenticity hinder widespread adoption.

Research limitations/implications

The study is geographically and sectorally focused and considers only business leaders using a qualitative approach.

Practical implications

The findings inform policy recommendations aimed at promoting fair access to technology, protecting intangible cultural heritage and establishing long-term innovation pathways that reflect traditional knowledge while ensuring economic viability and safeguarding cultural heritage.

Social implications

Providing insights on both local policy relevance and broader comparative implications for developing creative economies in the Global South. By situating its findings in conversation with regionally focused scholarship on AI adoption in Asian creative contexts, which is glaringly underrepresented in the existing AI-creativity scholarship dominated by East Asian and Western views.

Originality/value

The study emphasizes the importance of context-sensitive approaches to AI integration that recognize artisans as active agents in shaping the role of technology, rather than passive recipients of external innovation. By situating this findings in conversation with regionally focused knowledge on AI adoption in Asian creative contexts, which is glaringly underrepresented in the existing AI-creativity literature dominated by East Asian and Western views. Practically, the study delivers actionable specific implications for policymakers, Artisans and Entrepreneurs, support agencies and IP governance reformers, with recommendations appropriately moderated to reflect the qualitative sample’s scale while still pointing toward the urgent need for adaptive legislative frameworks, targeted digital literacy interventions and regionally informed AI governance strategies capable of protecting and empowering Sri Lanka’s arts and crafts sector.

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