Authors - Deepali Newaskar, Saurabh Parhad, Anjali Yadav, Siddhi Shinde, Samika Karne, Atharva Nangare, Misbah Shaikh Abstract - This study investigates the effectiveness of a student-driven development (SDD) approach utilizing ChatGPT to create SQL-based inventory management systems for Micro, Small, and Medium Enterprises (MSMEs), with a focus on contributing to Sustainable Development Goal (SDG) 12 (Re-sponsible Consumption and Production). A mixed-method study involving 30 student-MSME collaborations was conducted to evaluate the resulting systems based on stock accuracy, reporting efficiency, and user satisfaction. The quantitative results demonstrate significant performance enhancements, with systems achieving average scores of 7.7 for stock accuracy, 7.63 for reporting efficiency, and 8.17 for user satisfaction (on a 10-point scale). Technical analysis showed ChatGPT's pivotal role in input validation (15 cases), SQL query construction (8 cases), and report optimization (7 cases). The most frequent SQL commands were SELECT (14 instances), UPDATE (11 instances) and INSERT (5 instances), highlighting robust data handling. The findings confirm that integrating AI tools like ChatGPT within an SDD framework can deliver practical, scalable, and sustainable digital solutions for MSMEs, advancing digital trans-formation while reinforcing the applied role of higher education in achieving global sustainability goals. These results highlight the potential of student-led AI-assisted development as a scalable model for MSME digital transformation aligned with SDG 12.