As artificial intelligence coupled with digital technologies vehemently redesigns the global business environment, small businesses experience unique opportunities and challenges different from those of bigger enterprises. Adopting the PRISMA guideline, this study systematically reviews the available literature to highlight the enablers and barriers of adopting automation and artificial intelligence in small enterprises. The findings of this study include key barriers such as organizational rigidity to change, insufficient financial resources and insufficient skilled personnel, among others. Although these challenges may sound extreme, it is essential to note that the potential of AI and its tools to improve customer engagement and operations is a globally acknowledged benefit. This study also found that these opportunities and challenges are diverse across the world, with each region experiencing its obstacles. This study concludes that although the implementation of AI and automation bears undeniable growth opportunities for small businesses globally, it also presents several challenges which call for multidimensional solutions and cross-border collaborations to help these firms overcome these challenges and cultivate potential opportunities. This research contributes to comprehending the digital evolution of small businesses, offering insights that can be useful to policymakers, industry leaders, and scholars who are interested in the relationship between digital technologies and businesses across the world’s regions. The purpose of this research is to evaluate this existing gap by spotlighting the very available opportunities for artificial intelligence and automation in these small-scale businesses, discussing their challenges and benefits and addressing their effect on business processes.
References
[1]
Kumar, V., Ashraf, A.R. and Nadeem, W. (2024) AI-Powered Marketing: What, Where, and How? InternationalJournalofInformationManagement, 77, Article ID: 102783. https://doi.org/10.1016/j.ijinfomgt.2024.102783
[2]
Bayraktar, M. and Algan, N. (2019) The Importance of SMEs on World Economies. International Conference on Eurasian Economies, Famagusta, 11-13 June 2019, 56-61. https://doi.org/10.36880/c11.02265
[3]
Gil de Zúñiga, H., Goyanes, M. and Durotoye, T. (2023) A Scholarly Definition of Artificial Intelligence (AI): Advancing AI as a Conceptual Framework in Communication Research. PoliticalCommunication, 41, 317-334. https://doi.org/10.1080/10584609.2023.2290497
[4]
Xu, Y., Liu, X., Cao, X., Huang, C., Liu, E., Qian, S., et al. (2021) Artificial Intelligence: A Powerful Paradigm for Scientific Research. TheInnovation, 2, Article ID: 100179. https://doi.org/10.1016/j.xinn.2021.100179
[5]
Elhajjar, S., Yacoub, L. and Yaacoub, H. (2023) Automation in Business Research: Systematic Literature Review. InformationSystemsande-BusinessManagement, 21, 675-698. https://doi.org/10.1007/s10257-023-00645-z
[6]
Ayinaddis, S.G. (2025) Artificial Intelligence Adoption Dynamics and Knowledge in SMEs and Large Firms: A Systematic Review and Bibliometric Analysis. JournalofInnovation&Knowledge, 10, Article ID: 100682. https://doi.org/10.1016/j.jik.2025.100682
[7]
Borah, S., et al. (2022) Applications of Artificial Intelligence in Small-and Medium-Sized Enterprises (SMEs). In: Mallick, P.K., et al., Eds., Cognitive Informatics and Soft Computing, Springer, 717-726.
[8]
Saha, P. (2018) The Impact of Artificial Intelligence and Automation on Businesses Processes and Employment: An Analytical Study. Psychology and Education Journal, 55, 65-73.
[9]
Azman, N.A., Mohamed, A. and Jamil, A.M. (2021) Artificial Intelligence in Automated Bookkeeping: A Value-Added Function for Small and Medium Enterprises. JOIV: InternationalJournalonInformaticsVisualization, 5, 224-230. https://doi.org/10.30630/joiv.5.3.669
[10]
Sharma, P. (2020) Artificial Intelligence, Machine Learning and Data Science as Iterations of Business Automation for Small Businesses. In: El Namaki, M.S.S. and Sharma, P., Eds., ManagementofDatainAIAge, CSMFL Publications, 87-94. https://doi.org/10.46679/isbn978819484834904
[11]
Mantri, A. and Mishra, R. (2023) Empowering Small Businesses with the Force of Big Data Analytics and AI: A Technological Integration for Enhanced Business Management. TheJournalofHighTechnologyManagementResearch, 34, Article ID: 100476. https://doi.org/10.1016/j.hitech.2023.100476
[12]
Goetz, D. (2025) Can AI Improve Marketing Communications for Small Businesses? Field Evidence from Early Adopters.
[13]
Amankwah-Amoah, J. and Lu, Y. (2022) Harnessing AI for Business Development: A Review of Drivers and Challenges in Africa. ProductionPlanning&Control, 35, 1551-1560. https://doi.org/10.1080/09537287.2022.2069049
[14]
Baez, J.R. and Igbekele, R. (2021) Challenges of AI Adoption Insights from the Swedish AI Ecosystem. https://kth.diva-portal.org/smash/get/diva2:1591640/FULLTEXT01.pdf
[15]
Ikpe, E.O. (2024) Adoption and Implementation of Artificial Intelligence in Small Businesses in Selected Developing Countries. JournalofHealth, AppliedSciencesandManagement, 8, 26-34. https://doi.org/10.4314/johasam.v8i1.3
[16]
Kumar, M., Raut, R.D., Mangla, S.K., Ferraris, A. and Choubey, V.K. (2022) The Adoption of Artificial Intelligence Powered Workforce Management for Effective Revenue Growth of Micro, Small, and Medium Scale Enterprises (MSMEs). ProductionPlanning&Control, 35, 1639-1655. https://doi.org/10.1080/09537287.2022.2131620
[17]
Arakpogun, E.O., Elsahn, Z., Olan, F. and Elsahn, F. (2021) Artificial Intelligence in Africa: Challenges and Opportunities. In: Hamdan, A., et al., Eds., The Fourth Industrial Revolution: Implementation of Artificial Intelligence for Growing Business Success, Springer International Publishing, 375-388. https://doi.org/10.1007/978-3-030-62796-6_22
[18]
Yusuf, S.O., et al. (2024) Challenges and Opportunities in AI and Digital Transformation for SMEs: A Cross-Continental Perspective. WorldJournalofAdvancedResearchandReviews, 23, 668-678. https://doi.org/10.30574/wjarr.2024.23.3.2511
[19]
Moilanen, T. and Laatikainen, E. (2023) Challenges SMEs Face in Implementing Artificial Intelligence. https://www.researchgate.net/publication/376513534_challenges_smes_face_in_implementing_artificial_intelligence
[20]
Lada, S., et al. (2023) Determining Factors Related to Artificial Intelligence (AI) Adoption among Malaysia’s Small and Medium-Sized Businesses. https://eprints.ums.edu.my/id/eprint/37986
[21]
Badghish, S. and Soomro, Y.A. (2024) Artificial Intelligence Adoption by SMEs to Achieve Sustainable Business Performance: Application of Technology-Organization-Environment Framework. Sustainability, 16, Article No. 1864. https://doi.org/10.3390/su16051864
[22]
Luo, Y., Cui, H., Zhong, H. and Wei, C. (2023) Business Environment and Enterprise Digital Transformation. FinanceResearchLetters, 57, Article ID: 104250. https://doi.org/10.1016/j.frl.2023.104250
[23]
Blahušiaková, M. (2023) Business Process Automation: New Challenges to Increasing the Efficiency and Competitiveness of Companies. StrategicManagement, 28, 18-33. https://doi.org/10.5937/straman2300038b
[24]
Nascimento, A. and Meirelles, F. (2022) An Artificial Intelligence Adoption Model for Large and Small Businesses. SSRNElectronicJournal. https://doi.org/10.2139/ssrn.4194043
[25]
Sharma, S. (2023) Introduction: AI for Small Business: Leveraging Automation to Stay Ahead. In: Sharma, S., Ed., AIforSmallBusinessLeveragingAutomationtoStayAhead, CSMFL Publications, 1-3. https://doi.org/10.46679/978819573223400
[26]
Jain, A., Kakade, K.S. and Vispute, S.A. (2024) The Role of Artificial Intelligence (AI) in the Transformation of Small-and Medium-Sized Businesses. In: Dixit, S., Maurya, M., Jain, V. and Subramaniam, G., Eds., Artificial Intelligence-Enabled Businesses: How to Develop Strategies for Innovation, Scrivener Publishing, 209-226.
[27]
Sharma, S. (2023) Automation and Artificial Intelligence for Small Businesses. In: Sharma, S., Ed., AIforSmallBusinessLeveragingAutomationtoStayAhead, CSMFL Publications, 1-13. https://doi.org/10.46679/978819573223401
[28]
Sharma, S. (2023) Case Studies: Successful Implementations of Automation and AI in Small Businesses. In: Sharma, S., Ed., AIforSmallBusinessLeveragingAutomationtoStayAhead, CSMFL Publications, 57-66. https://doi.org/10.46679/978819573223404
[29]
Zavodna, L.S., Überwimmer, M. and Frankus, E. (2024) Barriers to the Implementation of Artificial Intelligence in Small and Medium Sized Enterprises: Pilot Study. JournalofEconomicsandManagement, 46, 331-352. https://doi.org/10.22367/jem.2024.46.13
[30]
Okoye, C.C., et al. (2024) Accelerating SME Growth in the African Context: Harnessing FinTech, AI, and Cybersecurity for Economic Prosperity. International Journal of Science and Research Archive, 11, 2477-2486.
[31]
Sharma, S. (2023) Future of Automation and AI in Small Businesses. In: Sharma, S., Ed., AIforSmallBusinessLeveragingAutomationtoStayAhead, CSMFL Publications, 85-102. https://doi.org/10.46679/978819573223406
[32]
Crockett, K., Colyer, E., Gerber, L. and Latham, A. (2023) Building Trustworthy AI Solutions: A Case for Practical Solutions for Small Businesses. IEEETransactionsonArtificialIntelligence, 4, 778-791. https://doi.org/10.1109/tai.2021.3137091
[33]
Ridho, W.F. (2023) An Examination of the Opportunities and Challenges of Conversational Artificial Intelligence in Small and Medium Enterprises. ReviewofBusinessandEconomicsStudies, 11, 6-17. https://doi.org/10.26794/2308-944x-2023-11-3-6-17
[34]
Muminova, E., Ashurov, M., Akhunova, S. and Turgunov, M. (2024) AI in Small and Medium Enterprises: Assessing the Barriers, Benefits, and Socioeconomic Impacts. 2024 International Conference on Knowledge Engineering and Communication Systems (ICKECS), Chikkaballapur, 18-19 April 2024, 1-6. https://doi.org/10.1109/ickecs61492.2024.10616816
[35]
Krioaijourney (2025) Case Studies: Real-World Examples of Small Businesses Using AI.
[36]
Schönberger, M. (2023) Artificial Intelligence for Small and Medium-Sized Enterprises: Identifying Key Applications and Challenges. JournalofBusinessManagement, 21, 89-112. https://doi.org/10.32025/jbm23004
[37]
Tishtykbayeva, А.Z., Gelashvili, N.N. and Тurusbekov, А.Е. (2023) Artificial Intelligence Implementation in Small Businesses. BulletinoftheKaragandauniversityEconomyseries, 111, 125-132. https://doi.org/10.31489/2023ec3/125-132
[38]
Iyelolu, T.V., et al. (2024) Driving SME Innovation with AI Solutions: Overcoming Adoption Barriers and Future Growth Opportunities. InternationalJournalofScienceandTechnologyResearchArchive, 7, 36-54. https://doi.org/10.53771/ijstra.2024.7.1.0055
[39]
Perifanis, N. and Kitsios, F. (2023) Investigating the Influence of Artificial Intelligence on Business Value in the Digital Era of Strategy: A Literature Review. Information, 14, Article No. 85. https://doi.org/10.3390/info14020085
[40]
Faruque, Md.O., et al. (2024) Technology Adoption and Digital Transformation in Small Businesses: Trends, Challenges, and Opportunities. InternationalJournalforMultidisciplinaryResearch, 6, 1-21. https://doi.org/10.36948/ijfmr.2024.v06i05.29207
[41]
Sharma, S. (2023) Overcoming Challenges in Implementing Automation and AI in Small Businesses. In: Sharma, S., Ed., AIforSmallBusinessLeveragingAutomationtoStayAhead, CSMFL Publications, 67-84. https://doi.org/10.46679/978819573223405
[42]
Sharma, S. (2023) Implementing Automation and AI in Small Businesses. In: Sharma, S., Ed., AIforSmallBusinessLeveragingAutomationtoStayAhead, CSMFL Publications, 28-56. https://doi.org/10.46679/978819573223403
[43]
Devey, J. and Lucas, E. (2024) The Role of AI in Transforming SMEs: Boosting Competitiveness through Digital Innovation. https://www.researchgate.net/publication/384441687_The_Role_of_AI_in_Transforming_SMEs_Boosting_Competitiveness_through_Digital_Innovation
[44]
Govori, A. and Sejdija, Q. (2023) Future Prospects and Challenges of Integrating Artificial Intelligence within the Business Practices of Small and Medium Enterprises. JournalofGovernanceandRegulation, 12, 176-183. https://doi.org/10.22495/jgrv12i2art16
