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Leveraging AI-powered social media platforms to enhance customer engagement and drive sales growth in Uganda’s SMEs

Author

Listed:
  • Kamala Emmanuella James Laki

    (Comenius University Bratislava, Bratislava, Slovakia)

  • Andrej Miklosik

    (Comenius University Bratislava, Bratislava, Slovakia)

Abstract

In the digital age, Artificial Intelligence (AI) has transformed social media platforms into powerful marketing tools, particularly for small and medium-sized enterprises (SMEs) seeking to improve customer engagement and drive sales. This study investigates the role of AI-powered features such as chatbots, content recommendation algorithms, targeted advertising, and predictive analytics on platforms like Facebook, WhatsApp, TikTok, and Instagram in enhancing brand visibility and influencing sales performance among SMEs in Uganda. In an extended Technology Acceptance Model (TAM), the study employed a mixed-methods approach, collecting survey data from 155 SMEs operators across Kampala, Gulu, Mbale, and Mbarara. Using multiple regression analysis, the findings reveal that attitude towards AI tools and customer engagement are the strongest predictors of sales growth, followed by perceived usefulness and ease of use. The study highlights the growing relevance of AI in the Ugandan SME ecosystem and underscores the need for digital skills development, localized AI tools, and inclusive policy support to maximize AI’s impact on business growth. This study concludes with practical recommendations and proposes future research directions to bridge digital disparities and expand understanding of AI’s transformative potential in emerging markets.

Suggested Citation

  • Kamala Emmanuella James Laki & Andrej Miklosik, 2025. "Leveraging AI-powered social media platforms to enhance customer engagement and drive sales growth in Uganda’s SMEs," Marketing Science & Inspirations, Comenius University in Bratislava, Faculty of Management, vol. 20(3), pages 46-58.
    • Handle: RePEc:cub:journm:v:20:y:2025:i:3:p:46-58
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    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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