ABSTRACT:- Artificial Intelligence (AI) is revolutionizing the business landscape by offering tools that enhance efficiency, decision-making, and customer engagement. For minority-owned businesses, which often face resource constraints and competitive challenges, AI provides opportunities to level the playing field. This paper explores how AI can empower these businesses to thrive in competitive sectors. It outlines the benefits, such as cost savings, improved decision-making, and enhanced customer experiences, as well as the challenges, including cost barriers, skill gaps, systemic inequities, and data privacy concerns. Finally, this paper provides actionable solutions to overcome these challenges, ensuring that minority-owned businesses can fully leverage AI to achieve sustainable growth.