Abstract
Small and medium-sized enterprises (SMEs) in developing countries are increasingly exploring artificial intelligence (AI) to enhance competitiveness. However, the literature unequivocally shows that many SMEs also struggling to adopt new and emerging technology due to their resource constraints. This study presents a systematic literature review of 32 peer-reviewed articles (215–225), identified through Scopus, Web of Science, leading AIS journals, and major IS conferences. Using thematic analysis, the review synthesizes key applications, challenges, and impacts of AI adoption in SMEs. Findings show that SMEs deploy AI for market engagement, innovation, operations, and strategic decision support. However, adoption is constrained by financial limitations, technological barriers, knowledge gaps, cultural rigidity, and ethical concerns. Reported benefits include improved financial outcomes, stronger market relationships, enhanced organizational performance, advanced analytics capabilities, and contributions to sustainability. The study offers insights that help shape the direction of future information systems research on AI in SMEs.
Recommended Citation
Kasigit, Lani; Akhlaghpour, Saeed; and Karanasios, Stan, "AI Adoption by SMEs in Developing Countries: Challenges,
Applications, and Benefits" (2025). ACIS 2025 Proceedings. 271.
https://aisel.aisnet.org/acis2025/271