ABSTRACT
Artificial Intelligence (AI) is responsible for the technological revolution in different industries. However, we think AI is currently used only by big giants worldwide. Today, AI technology is no longer firm-specific. A study by Forbes (2018) found that 51% of small businesses choose AI technology as an essential factor for their business. This is because AI technology provides numerous benefits to SMEs. AI technology aims to provide a competitive advantage to firms. Machine learning, deep learning, neural learning-based algorithms, models, and techniques all improve the firm’s work in several ways. First, it improves each functional business unit. For example, AI enhances the return on investment for firms, improves financial planning, and eases fraud detection. AI automates various processes and reduces the time and the cost of executing tasks. The AI-enabled chatbots provide better customer engagement, improve customer services and increase public relations. AI eases the recruitment process and smoothens the onboarding process. Fourth, AI algorithms help in performance management. In supply chain management, AI helps in supply chain planning, forecasting, warehouse, transportation, and distribution management. In human resource management, AI helps in training and development, recruitment, and onboarding. Furthermore, AI helps in improving business performance. This chapter discusses the application of AI across SMEs’ different business domains.
