The Role of Artificial Intelligence (AI) in Transforming Small and Medium Enterprises (SMEs):

AI is of great interest to researchers and practitioners as a means of achieving the necessary progress in the business industry. However, the role of AI in transforming SMEs is not well documented. The study assessed the role of AI in transforming SMEs globally. The study investigated the current s...

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Main Authors: Mugisha, Justin, Francis Adyanga, Akena, Ocan, Johnson
Format: Article
Language:English
Published: Applied Data Science and Analysis 2025
Subjects:
Online Access:http://hdl.handle.net/20.500.12493/2911
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author Mugisha, Justin
Francis Adyanga, Akena
Ocan, Johnson
author_facet Mugisha, Justin
Francis Adyanga, Akena
Ocan, Johnson
author_sort Mugisha, Justin
collection KAB-DR
description AI is of great interest to researchers and practitioners as a means of achieving the necessary progress in the business industry. However, the role of AI in transforming SMEs is not well documented. The study assessed the role of AI in transforming SMEs globally. The study investigated the current state of AI in SMEs, challenges, and opportunities. This study reviewed a total of 1,021 published articles, mainly from 1992-2024. The review was performed using scientifically cited and indexed databases, namely Dimensions, Web Science, Elsevier Scopus, and Google Scholar. The study demonstrates how AI enables SMEs to improve competitiveness, streamline operations, and conform to sustainability objectives by tackling particular issues such as scarce resources, operational inefficiencies, and cyber threats. The study closes knowledge gaps in how SMEs, particularly those with limited resources, might benefit from affordable AI tools and platforms. Also, it was found that building workforce capacity through collaborations and customized training programs can help close the skills gap, while improving cybersecurity and implementing efficient data management frameworks can help with privacy issues. However, despite the growing frame of literature on AI packages, studies specializing in AI embracing on the organizational level stay restrained. The study findings emphasized regional integration within the EAC through technology transfer and the development of SME capability. The current study aligns with Uganda’s NDPIII (2020/21–2024/25), under the innovation and technology application pillar, accelerating industrial growth.
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spelling oai:idr.kab.ac.ug:20.500.12493-29112025-05-13T00:00:19Z The Role of Artificial Intelligence (AI) in Transforming Small and Medium Enterprises (SMEs): A Narrative Review Mugisha, Justin Francis Adyanga, Akena Ocan, Johnson Artificial Intelligence SMEs Deep learning Application Challenges AI is of great interest to researchers and practitioners as a means of achieving the necessary progress in the business industry. However, the role of AI in transforming SMEs is not well documented. The study assessed the role of AI in transforming SMEs globally. The study investigated the current state of AI in SMEs, challenges, and opportunities. This study reviewed a total of 1,021 published articles, mainly from 1992-2024. The review was performed using scientifically cited and indexed databases, namely Dimensions, Web Science, Elsevier Scopus, and Google Scholar. The study demonstrates how AI enables SMEs to improve competitiveness, streamline operations, and conform to sustainability objectives by tackling particular issues such as scarce resources, operational inefficiencies, and cyber threats. The study closes knowledge gaps in how SMEs, particularly those with limited resources, might benefit from affordable AI tools and platforms. Also, it was found that building workforce capacity through collaborations and customized training programs can help close the skills gap, while improving cybersecurity and implementing efficient data management frameworks can help with privacy issues. However, despite the growing frame of literature on AI packages, studies specializing in AI embracing on the organizational level stay restrained. The study findings emphasized regional integration within the EAC through technology transfer and the development of SME capability. The current study aligns with Uganda’s NDPIII (2020/21–2024/25), under the innovation and technology application pillar, accelerating industrial growth. 2025-05-12T09:49:14Z 2025-05-12T09:49:14Z 2025 Article Mugisha, J., Adyanga, A. F., & Ocan, J. (2025). The Role of Artificial Intelligence (AI) in Transforming Small and Medium Enterprises (SMEs): A Narrative Review. Applied Data Science and Analysis, 2025, 112-117. 3005-317X http://hdl.handle.net/20.500.12493/2911 en Attribution-NonCommercial-NoDerivs 3.0 United States http://creativecommons.org/licenses/by-nc-nd/3.0/us/ application/pdf Applied Data Science and Analysis
spellingShingle Artificial Intelligence
SMEs
Deep learning
Application
Challenges
Mugisha, Justin
Francis Adyanga, Akena
Ocan, Johnson
The Role of Artificial Intelligence (AI) in Transforming Small and Medium Enterprises (SMEs):
title The Role of Artificial Intelligence (AI) in Transforming Small and Medium Enterprises (SMEs):
title_full The Role of Artificial Intelligence (AI) in Transforming Small and Medium Enterprises (SMEs):
title_fullStr The Role of Artificial Intelligence (AI) in Transforming Small and Medium Enterprises (SMEs):
title_full_unstemmed The Role of Artificial Intelligence (AI) in Transforming Small and Medium Enterprises (SMEs):
title_short The Role of Artificial Intelligence (AI) in Transforming Small and Medium Enterprises (SMEs):
title_sort role of artificial intelligence ai in transforming small and medium enterprises smes
topic Artificial Intelligence
SMEs
Deep learning
Application
Challenges
url http://hdl.handle.net/20.500.12493/2911
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