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AI Applications That Can Support Sustainable Practices in Small and Medium-Sized Enterprises in Latin America: A Systematic Review

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  • Flor Poveda-Valverde

    (Carrera de Emprendimiento e Innovación Social, Facultad de Ciencias Administrativas, Gestión Empresarial e Informática, Universidad Estatal de Bolívar, Guaranda 020150, Ecuador)

  • Sergio Enrique Fierro Barragán

    (Carrera de Emprendimiento e Innovación Social, Facultad de Ciencias Administrativas, Gestión Empresarial e Informática, Universidad Estatal de Bolívar, Guaranda 020150, Ecuador)

Abstract

This study aims to systematically review how artificial intelligence (AI) is being adopted by small and medium-sized enterprises (SMEs) in Latin America to improve resilience and support sustainable practices in uncertain business environments. Based on the PRISMA protocol, fourteen peer-reviewed studies published between 2020 and 2025 were analyzed. The results identify significant barriers such as lack of adoption, including insufficient technological infrastructure, limited specialized talent, and budgetary constraints. Despite these obstacles, AI is increasingly used to automate processes and enhance predictive decision-making. While most applications remain concentrated in logistics, manufacturing, and telecommunications, their potential to improve efficiency and competitiveness is evident. The review also identifies the absence of robust regulatory frameworks as a critical limitation, particularly regarding ethical issues such as data privacy and algorithmic transparency. Although these aspects are not extensively covered in the reviewed literature, they represent important gaps for future research. In conclusion, the responsible adoption of AI in SMEs can contribute to business performance and sustainability goals, provided that appropriate public policies and sectoral strategies are implemented.

Suggested Citation

  • Flor Poveda-Valverde & Sergio Enrique Fierro Barragán, 2026. "AI Applications That Can Support Sustainable Practices in Small and Medium-Sized Enterprises in Latin America: A Systematic Review," Sustainability, MDPI, vol. 18(7), pages 1-15, April.
  • Handle: RePEc:gam:jsusta:v:18:y:2026:i:7:p:3603-:d:1914900
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