Digital Transformation: Artificial Intelligence Adoption of Small Medium Enterprises in Gauteng
DOI:
https://doi.org/10.53819/81018102t70124Abstract
Artificial Intelligence (AI) is now a crucial element in the transforming of industries globally, propelled by greater development in computational processing, cloud and computational services, and deep learning technologies. Its uses, ranging from chatbots to self-driving cars, are becoming more widespread, presenting the opportunity to enhance organizational efficiency by as much as 40%. In light of global competitiveness and digital transformation, which have been induced by the COVID-19 era, AI is crucial, especially for Small and Medium Enterprises (SMEs). Nevertheless, SMEs face considerable obstacles to AI acceptance, such as financial and technical limitations, restricted access to advanced technologies, and a shortage of skilled personnel. These issues hinder their productivity and competitiveness within the national economy. This research investigates the elements that affect AI acceptance in the landscape of SMEs in Gauteng, with the goal of identifying barriers, evaluating the impact of managerial leadership, and assessing the use of AI in operations. A sample of 118 stakeholders, including owners, managers, and strategic employees from various backgrounds, was analysed, excluding large corporations and government entities. The study focuses on the ICT sector, exploring technological, organizational, environmental, and ethical aspects of AI implementation. The capstone report aims to formulate strategies that assist SMEs in overcoming challenges related to digital transformation, offering an introduction, literature review, methodology, analysis, and strategic recommendations specifically designed for the South African context. This research demonstrates that AI adoption among Gauteng's SMEs stands at a critical inflection point. Strong awareness of AI's potential combines with substantial adoption intentions, creating conditions for rapid diffusion. However, realising this potential requires coordinated action addressing identified barriers through organisational capability building, ecosystem enablement, and supportive policy frameworks.
Keywords: Artificial Intelligence, Technology, Environment, Organisation, SMEs
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