Empowering SMEs: The Role of Generative AI in Knowledge Retention

This study offers a comprehensive understanding of Generative AI’s role in knowledge management and knowledge retention within SMEs, proposing a robust framework that integrates social and technical factors to promote continuous learning and innovation. Despite substantial research on the general impact of AI on knowledge management, there is a notable scarcity of literature focusing specifically on Generative AI and its role in enhancing knowledge retention in SMEs. This gap is critical, given SMEs’ unique challenges, such as limited resources and high employee turnover rates. The research question guiding this study is: “To what extent does Generative AI impact knowledge retention in SMEs?”. The article employs a socio-technical systems framework to analyze the variables influencing knowledge sharing, emphasizing the interplay between individual motivation, organizational support and culture, and technological capability. This approach is complemented by the concept of human-centric digital technology, which focuses on enhancing human capabilities and experiences through technology. Generative AI enhances knowledge management practices by automating processes, analyzing large datasets, and generating new content, thus improving the efficiency and quality of knowledge sharing. It also reduces the administrative burden on employees, fosters a collaborative culture, and provides personalized feedback, thereby increasing individual motivation for knowledge sharing. Furthermore, Generative AI can address the inherent challenges SMEs face in knowledge retention by making critical knowledge easily accessible, reducing the learning curve for new employees, and maintaining operational efficiency. However, it is crucial to manage employees’ perceptions of Generative AI to avoid resistance or sabotage due to fears of redundancy.