Risk management in the implementation of artificial intelligence in small and medium-sized enterprises: Challenges and mitigation strategies
The contemporary business environment is characterized by rapid technological change and an increasing reliance on data-driven decision-making, making artificial intelligence (AI) a key driver of digital transformation and organizational efficiency. However, AI implementation is particularly challenging for small and medium-sized enterprises (SMEs) due to limited resources, a lack of skilled personnel, and various technical, financial, organizational, legal, and ethical risks associated with the process of digital transformation. Building on these challenges, the main aim of this paper is to identify the key risks associated with AI implementation in SMEs and to formulate appropriate strategies for their management and mitigation. The paper seeks to offer a systematic approach to risk management in AI projects, drawing on the principles of contemporary risk management standards and the specific characteristics of SME operations. It is based on the premise that digital transformation, including the adoption of artificial intelligence, is inevitable in the modern business environment, yet its implementation entails significant and multifaceted risks. At the same time, SMEs, due to their limited resources and specific organizational structures, occupy a particularly vulnerable position, which requires a systematic, thoughtful, and strategic approach to managing the risks associated with AI projects.