Seminar Wacana Pendidikan 2024 (SWAPEN 4.0) - 2024 : Artificial Intelligence Adoption in the Small and Medium Enterprises (SMEs): Challenges and Recommendations

Prof. Madya Dr. Ahmad Fauzi, Ahmad Zaini and Prof. Dr. Azahari, Jamaludin (2024) Seminar Wacana Pendidikan 2024 (SWAPEN 4.0) - 2024 : Artificial Intelligence Adoption in the Small and Medium Enterprises (SMEs): Challenges and Recommendations. Seminar Wacana Pendidikan 2024 (SWAPEN 4.0), - (-). pp. 243-251. ISSN 978-629-97432-3-1

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Abstract

The adoption of artificial intelligence (AI) in small and medium enterprises (SMEs) is increasingly recognized asa vital component for enhancing operational efficiency, customer engagement, and competitive advantage in a rapidly evolving digital landscape. This conceptual paper investigates the challenges SMEs face in adopting AI technologies, including lack of awareness, high implementation costs, resistance to change, insufficient technological skills, lack of digital strategy and the complexities of change management. Through a comprehensive review of existing literature, this study identifies key barriers to AI adoption and proposes actionable recommendations to facilitate the integration of AI within SMEs. The findings reveal that while SMEs can significantly benefit from AI such as improved decision-making and enhanced customer experiences but many remain hesitant to invest due to perceived complexities and resource limitations. The research highlights the importance of fostering a supportive organizational culture, investing in training programs, securing financial resources, collaboration with technology partners and incremental implementation to enable effective AI implementation. This study contributes to the understanding of AI adoption in SMEs by providing a framework that addresses specific challenges and recommendations. The implications extend beyond individual enterprises, as successful AI integration in SMEs can drive economic growth, job creation, and innovation at the community and national levels.

Item Type:	Article
Uncontrolled Keywords:	Artificial Intelligence, Small and Medium Enterprises, AI Adoption, Challenges, Recommendations.
Divisions:	Institute of Graduate Studies (IGS)
Depositing User:	LIBRARY1 UPTM
Date Deposited:	16 Jul 2025 08:39
Last Modified:	16 Jul 2025 08:39
URI:	http://eprints.kuptm.edu.my/id/eprint/4874

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