AI in small businesses: Current and potential applications and issues for adoption

Artificial intelligence (AI) represents a new area in digital technologies and is already changing the operations of businesses. Small businesses generally make up 99% of businesses and employ around half of the workforce in western countries, so it is important to examine the impact of AI on them. Despite this, AI adoption in small businesses remains under-researched. This chapter provides a high-level exploration of the adoption, and challenges associated with the use of AI by small businesses through a scoping review of the literature across relevant social sectors. The chapter highlights the effect of the COVID pandemic and considers whether this will lead to broader AI adoption. Barriers such as resource limitations, cybersecurity, and knowledge gaps are discussed. The chapter concludes with strategies to support AI adoption, emphasizing tailored tools and improved training to overcome these barriers, thereby enhancing operational efficiency and innovation in small businesses.