AI adoption and sustainability of SMES in Africa: Opportunities and challenges

Nwagbala, Stella Chinelo and Ezeanokwasa, Francisca Nkiruka and Nwachukwu, Raphael and Uzodike, Ngozi Justina and Nwosu, Ogechukwu Pauline (2025) AI adoption and sustainability of SMES in Africa: Opportunities and challenges. International Journal of Science and Research Archive, 14 (1). pp. 467-475. ISSN 2582-8185

Adopting Artificial Intelligence (AI) technologies presents significant opportunities and challenges for Small and Medium Enterprises (SMES) in Africa. As the continent strives for economic growth and sustainability. This study explores the potential benefits of AI adoption for African SMES. However, several challenges hinder widespread implementation, such as limited access to finance, and technology, inadequate infrastructure, lack of skilled workforce, and regulatory uncertainties. Data were generated via the Internet, newspapers, newsletters, libraries, and other documented materials pertinent to the study. However, the study highlights how AI can drive operational efficiency, reduce costs, and promote sustainable business practices. Furthermore, cultural attitudes towards technology adoption can also impact the pace at which SMES embrace AI solutions. To harness the full potential of AI for sustainable development in Africa, it is crucial to address these challenges through targeted policies that promote digital literacy, investment in infrastructure, and collaboration between governments, educational institutions, and the private sector. By creating a conducive environment that supports AI integration into business practices, African SMES can leverage these technologies to drive economic growth while contributing to broader sustainability goals.