The Role of Artificial Intelligence (AI) in Transforming Small and Medium Enterprises (SMEs):
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Date
2025
Journal Title
Journal ISSN
Volume Title
Publisher
Applied Data Science and Analysis
Abstract
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.
Description
Keywords
Artificial Intelligence, SMEs, Deep learning, Application, Challenges
Citation
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.