Assessing the Technological Readiness of Small Businesses for Artificial Intelligence-Powered Transformation
A West African Context
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Abstract
This study was necessitated by the apparent hesitance of Small and Medium-sized Enterprises (SMEs) in West Africa to embrace AI for their transformation, prompting an examination of AI-powered business transformation in SMEs. Employing a qualitative research method, the study utilized secondary qualitative data and thematic analysis to identify key influencing factors and reviewed existing empirical evidence on challenges and opportunities. Findings revealed a significant awareness and usage gap among West African SMEs, with a high level of awareness of AI tools, which contrasts with minimal actual implementation. Despite this, SMEs hold a highly positive perception of AI's potential benefits, including enhanced customer relationship management (CRM), improved content creation, and increased operational efficiency. However, widespread adoption is consistently hindered by certain barriers such as inadequate digital infrastructure, digital skill gaps, high financial costs, organizational resistance to change, and challenges related to data quality and integration. The study concluded that while AI offers immense transformative potential for West African SMEs, realizing these benefits necessitates bridging the gap between awareness and implementation through targeted interventions. The study, therefore, recommended among others, government-led policy and infrastructure development, comprehensive digital literacy and AI skills training for SMEs owners and workers.
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Copyright (c) 2025 Arachie, Augustine Ebuka, Anagwu, Victoria Kenechukwu, Ngozi, Comfort Okeke, Okwudiri, Nnanna-Ohuonu (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
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