Artificial Intelligence's Impact on SMEs: AI in Practice Restructuring Small and Medium-Sized Businesses

Abstract

This study examines the state of artificial intelligence (AI) governance globally, concentrating on the legislative initiatives implemented by more than 60 countries. Concerns regarding ethics, law, and society have also been raised by the rapid use of AI, which has revolutionized several industries. AI-driven political misinformation is becoming more and more common, which emphasizes the complex effects of AI on society, politics, the law, and ethics. In response, both domestic and international organizations have developed strategies, policies, and action plans to address the benefits and drawbacks of AI as well as the moral dilemmas raised by autonomous systems and algorithmic decision-making. The difficulties in implementing AI in SMEs are examined in detail, including lack of experience, lack of funds, problems with data quality, security concerns, difficulties integrating AI, employee resistance, and the requirement for change management. For SMEs to take advantage of AI's revolutionary potential, improve their competitiveness, and experience sustained development, they must overcome three obstacles. The implementation of artificial intelligence-powered solutions in customer service, human resource management, and decision-making procedures enhances overall financial performance. In addition, the research highlights how employment creation, economic effects, and technical improvements are all interconnected. Through the development of high-quality employment, financial gains, and the beneficial effects of AI on social well-being, it emphasizes the significance of inclusive and sustainable growth. To ensure a future in which AI contributes to economic development and societal well-being, politicians, corporations, and academics must work together to build ethical frameworks and conducive settings for AI adoption as societies navigate the revolutionary potential of AI.