Abstract

The increasing relevance of Artificial Intelligence (AI) in the Fourth Industrial Revolution has highlighted significant disparities in AI adoption among Small and Medium Enterprises (SMEs), particularly in developing regions such as Nigeria. This research builds on a Systematic Literature Review (SLR) that identified the socio-technical factors contributing to the AI divide, using empirical data from 144 Nigerian SMEs to deepen understanding of these challenges. Findings reveal that technical challenges, such as inadequate infrastructure and outdated technology, intersect with social issues, including resistance to change and low digital literacy, exacerbating the divide. Socio-technical barriers, such as skills shortages, ethical concerns, and regulatory gaps, hinder AI integration and equitable outcomes. The study highlights the need for targeted interventions, including policy support, infrastructure development, and capacity-building programs, to enable SMEs to harness AI’s transformative potential. It advocates for broader research to contextualise these findings and develop actionable strategies for addressing the AI divide in similar economies.

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