Artificial Intelligence Adoption for Small, Medium and Micro-sized Enterprises in Developing Countries: A Scoping Review

Abstract

Introduction: Artificial Intelligence (AI) is a transformative force in the Fourth Industrial Revolution; driving innovation and digital transformation across diverse sectors worldwide. For small enterprises in developing countries, AI adoption promises enhanced competitiveness, operational efficiency and customer engagement. Despite its potential, AI adoption rates remain low, limiting growth and sustainability.

Objectives: This study aims to explore the current status of AI adoption in developing countries by identifying key enablers and benefits, analysing barriers and challenges, and examining implementation strategies that facilitate effective AI adoption.

Methods: The study adopted a scoping review approach. Articles from online databases including ResearchGate, Google Scholar, Emerald Journal, Scopus and ScienceDirect ranging from the years 2021 to 2025, were used. The review analysis was performed using the PRISMA framework on 29 selected articles.

Results: The findings indicate that although AI adoption offers notable benefits including improved operational efficiency, enhanced decision-making abilities, and enriched customer and user experiences, its successful implementation depends on factors such as strong leadership and organizational support, robust technical infrastructure, and adequate knowledge and skills. Despite these potential benefits, small enterprises continue to face significant challenges, including limited expertise, financial constraints, and insufficient infrastructure. The literature recommends enhancing AI adoption through capacity building via education and training, infrastructure investment, and collaborative partnerships. It also emphasizes the need for clear policies and a phased approach to ensure sustainable integration of AI technologies.

Conclusions: The adoption of artificial intelligence by small enterprises is shaped by multiple factors that influence both implementation and operations. While AI offers significant benefits across sectors, technical and non-technical challenges remain. For effective and sustainable adoption, small enterprises must align AI with their capabilities and collaborative efforts among government and industry.