The Effect of Artificial Intelligence Technology on Small and Medium-Sized Enterprises Success in Akwa Ibom State
TL;DR
The adoption of AI technologies significantly enhances the SMEs Success, and automation, customer engagement, supply chain optimization, forecasting, and product development positively impact operational efficiency, customer satisfaction, and overall competitiveness.
Abstract
Purpose: This study examines the effect of Artificial Intelligence Technology on Small and Medium-Sized Enterprises (SMEs) in Akwa Ibom State Nigeria. Focusing on the five dimensions of Artificial intelligence (Automation, Customer Engagement, Supply Chain Optimization, Forecasting and Product Development), Methodology: a survey design was adopted in selecting 400 SMEs within the three senatorial districts of Akwa Ibom State: Uyo, Ikot Ekpene and Eket. Primary data were collected and interpreted. Findings: Using Regression Analysis, the results revealed that automation has a statistically significant positive effect on SMEs success in Akwa Ibom State (p-value = 0.000 < 0.05, Customer engagement showed a statistically significant positive effect on SME success (p-value = 0.000 < 0.05), Supply chain optimization significantly improves SMEs success (p-value = 0.000 < 0.05), Forecasting was shown to have a statistically significant positive effect on SMEs success (p-value = 0.001 < 0.05) and Product development was found to have a statistically significant positive effect on SMEs success (p-value = 0.000 < 0.05). Originality/Value: This study concludes that the adoption of AI technologies significantly enhances the SMEs Success. Specifically, automation, customer engagement, supply chain optimization, forecasting, and product development positively impact operational efficiency, customer satisfaction, and overall competitiveness. It was recommended that the government should support SMEs in adopting AI-driven automation tools by providing financial incentives such as grants, subsidies, or tax breaks. SMEs should prioritize investing in scalable and costeffective AI solutions for customer engagement, collaborate with AI solution providers to integrate advanced supply chain optimization tools into their operations and adopt AI-powered forecasting tools. These tools should be utilized alongside training programs that empower employees to interpret and act on forecasted data effectively.