ARTIFICIAL INTELLIGENCE AS A STRATEGIC TOOL FOR SME GROWTH: FROM PROCESS AUTOMATION TO KNOWLEDGE INTELLIGENCE
DOI:
https://doi.org/10.35120/sciencej0404113pKeywords:
strategic management and learning, knowledge intelligence, various technology-intensive industries, operational efficiency, small and medium-sized businessesAbstract
The foundation of the majority of national economies, small and medium-sized businesses (SMEs), is severely lacking in knowledge of strategic management and digitization. The strategic and social role of artificial intelligence (AI) in supporting the expansion of SMEs is examined in this article, which moves away from routine process automation and toward higher-order "knowledge intelligence." This paper proposes a conceptual and empirical model for how AI adoption affects organizational capacities, decision-making process efficiency, and customer value creation. It is based on strategic management and innovation diffusion theories. The study used a mixed-methods approach, and observations from 20 SMEs operating in various technology-intensive industries were complemented by reports analyzed by operations managers and founders. The results show that whereas complementing AI practices are more focused on strategic learning, capability building, and data-driven innovation, early applications of AI are focused on operational efficiency (e.g., predictive analytics, automated workflow, and customer interfaces). The results show that the main factors facilitating AI's disruptive effects are management readiness, data maturity, and entrepreneurial attitude. To help SMEs transition from automation-based efficiencies to lasting competitive advantage through knowledge-intelligent systems, the paper concludes with a strategic roadmap.
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