IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0323249.html

Navigating the AI landscape in SMEs: Overcoming internal challenges and external obstacles for effective integration

Author

Listed:
  • Roziah Mohd Rasdi
  • Nordahlia Umar Baki

Abstract

Artificial intelligence (AI) integration in small and medium-sized enterprises (SMEs) is hampered by a variety of internal and external challenges. This article analyses these hurdles and underlines the need of an adaptation framework designed particularly for SMEs. The study collects primary data by conducting detailed interviews with representatives from six different SMEs in distinct sectors. The results indicate substantial internal obstacles, including reluctance to change, fear of job displacement by technology, and restricted resources, all of which impede the incorporation of AI. SMEs encounter a dynamic technological landscape, stringent regulatory requirements, and intense rivalry externally, necessitating agile and prompt strategy adjustments, a challenge often faced by SMEs. Ultimately, this research highlights the need of creating AI implementation plans that are customized to the distinct requirements and situations of SMEs. More adaptable and supportive legislative frameworks are essential to assist these enterprises in efficiently using AI and staying competitive in the digital era. This study contributes to the current discourse on technological progress in SMEs and establishes the foundation for next policies and initiatives designed to enhance their competitive edge using AI technology.

Suggested Citation

  • Roziah Mohd Rasdi & Nordahlia Umar Baki, 2025. "Navigating the AI landscape in SMEs: Overcoming internal challenges and external obstacles for effective integration," PLOS ONE, Public Library of Science, vol. 20(5), pages 1-15, May.
    • Handle: RePEc:plo:pone00:0323249
    DOI: 10.1371/journal.pone.0323249
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0323249
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0323249&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0323249?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sasan Bakhtiari & Robert Breunig & Lisa Magnani & Jacquelyn Zhang, 2020. "Financial Constraints and Small and Medium Enterprises: A Review," The Economic Record, The Economic Society of Australia, vol. 96(315), pages 506-523, December.
    2. Hidekatsu Asada & Stewart Nixon & Vincent Koen, 2017. "Boosting productivity in Malaysia," OECD Economics Department Working Papers 1370, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Iman Cheratian & Saleh Goltabar, 2025. "Decoding the nexus: Finance availability and firm growth in the wake of COVID‐19," Development Policy Review, Overseas Development Institute, vol. 43(4), July.
    2. Wang, Rui & Mao, Keqi, 2024. "How does bank competition affect trade-mode transformation? Evidence from Chinese export enterprises," Journal of Multinational Financial Management, Elsevier, vol. 72(C).
    3. Anos Chitamba & Yearwood Verna & Swanepoel Matthys Swanepoel Matthys & Myeza Gabriel & Sizwe Mbona, 2025. "Entrepreneurship as an alternative career path for management accounting graduates in South Africa: Opportunities in consulting, financial advisory and beyond," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 14(5), pages 576-587, July.
    4. Eugine Nkwinika & Olawale Olufemi Akinrinde, 2023. "An investigation into the financial challenges affecting the success of entrepreneurs in South Africa," Technology audit and production reserves, PC TECHNOLOGY CENTER, vol. 6(4(74)), pages 36-44, December.
    5. Radeef Chundakkadan & Rajesh Raj Natarajan & Subash Sasidharan, 2022. "Small firms amidst COVID‐19: Financial constraints and role of government support," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 51(3), November.
    6. Ying Wu & Yuanyue Deng, 2024. "Does digital transformation crowd out the employment of lower skill labor?," Bulletin of Economic Research, Wiley Blackwell, vol. 76(3), pages 726-748, July.
    7. Fuming Yang & Xixi Ye & Weilun Huang & Xuemeng Zhao, 2023. "The impacts on informal financing strategy of small and micro enterprises by interest rate risks and public health emergencies," International Entrepreneurship and Management Journal, Springer, vol. 19(4), pages 1673-1705, December.
    8. Robert Breunig & Diana Hourani & Sasan Bakhtiari & Elisabetta Magnani, 2020. "Do financial constraints affect the composition of workers of a firm?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 23(1), pages 79-97.
    9. Sahab Zandi & Kamesh Korangi & Juan C. Moreno-Paredes & Mar'ia 'Oskarsd'ottir & Christophe Mues & Cristi'an Bravo, 2025. "A Multimodal Approach to SME Credit Scoring Integrating Transaction and Ownership Networks," Papers 2510.09407, arXiv.org.
    10. Iman Cheratian & Saleh Goltabar, 2023. "Finance-Growth Nexus in Time of Covid-19 Lockdown: Case of Iranian MSMES," Working Papers 1695, Economic Research Forum, revised 20 Dec 2023.
    11. Zhang, Xiekui & Gong, Dayong & Huang, Yihan & Li, Yiting, 2024. "The Government's fiscal and taxation policy effect on enterprise productivity: Policy choice and optimal allocation," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 28-41.
    12. Majeed, Omer & Hambur, Jonathan & Breunig, Robert, 2025. "Does monetary policy impact innovation? Evidence from Australian Administrative Data," Journal of Macroeconomics, Elsevier, vol. 86(C).
    13. Cheratian, Iman & Goltabar, Saleh & Gholipour, Hassan F. & Farzanegan, Mohammad Reza, 2024. "Finance and sales growth at the firms level in Iran: Does type of spending matter?," Research in International Business and Finance, Elsevier, vol. 67(PB).
    14. Mubarack H. Kirumirah & Emmanuel J. Munishi & Anna E. Kajubili, 2023. "The Conundrum in Accessing Business Development Services among Urban Informal Manufacturers in Dar es Salaam, Tanzania," International Journal of Business and Management, Canadian Center of Science and Education, vol. 16(12), pages 119-119, February.
    15. Cheratian, Iman & Goltabar, Saleh, 2026. "Beyond sanctions: Unpacking growth generators for Iranian small business," Journal of Policy Modeling, Elsevier, vol. 48(2), pages 379-397.
    16. Hossain, Mohammad Razib & Rao, Amar & Sharma, Gagan Deep & Dev, Dhairya & Kharbanda, Aeshna, 2024. "Empowering energy transition: Green innovation, digital finance, and the path to sustainable prosperity through green finance initiatives," Energy Economics, Elsevier, vol. 136(C).
    17. Edward Kiringa & Fredrick W.S. Ndede & Argan Wekesa, 2021. "Relationship lending and access to financial services by SMEs in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(5), pages 235-244, July.
    18. Danik Lidia & Mirońska Dominika, 2022. "Who gains more from networking? A comparative study of Polish exporting and non-exporting SMEs," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 58(1), pages 64-79, March.
    19. Iman Cheratian & Saleh Goltabar & Hassan Gholipour Fereidouni & Mohammad Reza Farzanegan, 2023. "External Financing and Firm Growth: Evidence from Micro, Small, and Medium Enterprises in Iran," MAGKS Papers on Economics 202308, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    20. Angelo Leogrande & Mauro Di Molfetta & Valeria Notarnicola & Maria Giovanna Trotta, 2026. "Picking Winners or Marking Them? Timing-Based Evaluation of Innovation Certification," Working Papers hal-05662584, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0323249. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.