The Role of Artificial Intelligence (AI) in the Transformation of Small‐ and Medium‐Sized Businesses

Summary

Artificial intelligence (AI) has permeated diverse sectors, revolutionizing operations across industries, from customer care to manufacturing, energy, and logistics. This chapter focuses on the transformative potential of AI, specifically examining its impact on small‐ and medium‐sized businesses (SMBs). The study delves into the emergence of data‐driven AI systems, exploring their implications for business practices. It aims to elucidate how AI can enhance productivity and innovation within SMBs while addressing the challenges inherent in the transformative process. By comparing AI diffusion across sectors and countries, the research sheds light on potential inequalities stemming from varying adoption rates. The chapter concludes by advocating for policy interventions that support inclusive AI adoption, foster a data‐driven culture, and address barriers to promote holistic business transformation.