American Journal of Advanced Multidisciplinary Innovation and Research
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Volume 7 Issue 5
September-October 2026
Indexing Partners
Artificial Intelligence Readiness Among Small and Medium-Sized Enterprises
| Author(s) | Dr. Daniel K. Morgan |
|---|---|
| Country | United States |
| Abstract | Artificial intelligence is becoming increasingly accessible to small and medium-sized enterprises through cloud services, generative AI applications, embedded analytics, automation platforms, and subscription-based business software. Accessibility, however, does not necessarily imply organizational readiness. SMEs frequently operate with limited financial reserves, small specialist teams, fragmented data systems, informal governance arrangements, and substantial dependence on external technology providers. Consequently, the ability to experiment with an AI tool may develop considerably faster than the organizational capability required to integrate AI responsibly into core business processes. This study examines artificial intelligence readiness among SMEs through a multidimensional framework incorporating digital infrastructure, data maturity, workforce competence, leadership commitment, financial capacity, AI governance, and external ecosystem support. Contemporary evidence confirms the relevance of this distinction. OECD research reports that SME AI adoption remains below that of larger enterprises, while Eurostat data for 2025 indicate that 17.0% of small EU enterprises and 30.4% of medium enterprises used AI technologies, compared with 55.0% of large enterprises. OECD survey evidence also shows growing use of generative AI among SMEs while identifying continuing barriers involving skills, legal uncertainty, data handling, and perceived relevance. Because a verified firm-level dataset was not supplied, the present investigation adopts a simulation-based methodological design. A synthetic sample of 420 enterprises was created, comprising 180 micro, 150 small, and 90 medium-sized firms. AI readiness was measured on a 0–100 composite index across seven dimensions. The simulated overall mean was 57.2, indicating a developing but uneven readiness profile. Leadership commitment produced the highest dimensional score at 65.3, followed by digital infrastructure at 62.4 and ecosystem support at 61.4. AI governance recorded the lowest mean at 48.9, while workforce competence and data maturity also remained comparatively weak. Only 12 of the 420 simulated SMEs reached the advanced-readiness category, whereas 239 remained in emerging or developing stages. The findings suggest that AI readiness should be treated as a capability-development process rather than as a binary technology-adoption decision. The paper proposes a staged readiness model in which SMEs first establish digital and data foundations, then develop workforce and managerial competence, implement controlled AI use cases, and progressively institutionalize governance, monitoring, cybersecurity, and performance evaluation. The study concludes that sustainable SME AI adoption depends less on immediate access to powerful AI tools than on the ability to align technology with reliable data, skilled people, management processes, financial discipline, and responsible governance. |
| Keywords | : artificial intelligence readiness, small and medium-sized enterprises, SMEs, AI adoption, digital maturity, organizational readiness, AI capability, technology adoption, responsible AI, digital transformation |
| Field | Engineering |
| Published In | Volume 3, Issue 2, March-April 2022 |
| Published On | 2022-03-08 |
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E-ISSN XXXX-XXXXCrossRef DOI prefix of AJAMIR is 10.00000/AJAMIR
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