Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

The Effect of Artificial Intelligence Technology on Small and Medium-Sized Enterprises Success in Akwa Ibom State

Aniediabasi James Udom, Joshua Christopher Ekpouko

Abstract

Purpose: This study examines the effect of Artificial Intelligence Technology on Small and Medium-Sized Enterprises (SMEs) in Akwa Ibom State Nigeria. Focusing on the five dimensions of Artificial intelligence (Automation, Customer Engagement, Supply Chain Optimization, Forecasting and Product Development), Methodology: a survey design was adopted in selecting 400 SMEs within the three senatorial districts of Akwa Ibom State: Uyo, Ikot Ekpene and Eket. Primary data were collected and interpreted. Findings: Using Regression Analysis, the results revealed that automation has a statistically significant positive effect on SMEs success in Akwa Ibom State (p-value = 0.000 < 0.05, Customer engagement showed a statistically significant positive effect on SME success (p-value = 0.000 < 0.05), Supply chain optimization significantly improves SMEs success (p-value = 0.000 < 0.05), Forecasting was shown to have a statistically significant positive effect on SMEs success (p-value = 0.001 < 0.05) and Product development was found to have a statistically significant positive effect on SMEs success (p-value = 0.000 < 0.05). Originality/Value: This study concludes that the adoption of AI technologies significantly enhances the SMEs Success. Specifically, automation, customer engagement, supply chain optimization, forecasting, and product development positively impact operational efficiency, customer satisfaction, and overall competitiveness. It was recommended that the government should support SMEs in adopting AI-driven automation tools by providing financial incentives such as grants, subsidies, or tax breaks. SMEs should prioritize investing in scalable and cost- effective AI solutions for customer engagement, collaborate with AI solution providers to integrate advanced supply chain optimization tools into their operations and adopt AI-powered forecasting tools. These tools should be utilized alongside training programs that empower empl

Keywords

Artificial Intelligence TechnologyAutomationCustomer EngagementSupply Chain

References

, AI can tailor marketing campaigns to individual customers, resulting in higher conversion rates and customer satisfaction (Udom, 2024). AI is instrumental in optimizing supply chain management and resource allocation, reducing costs, and improving service delivery. For SMEs, this means they can operate more efficiently, minimize waste, and respond swiftly to changes in market demand (Udom & Ekpouko, 2024). Overall, the integration of AI into business processes not only enhances operational capabilities but also positions organizations for long-term success by fostering a culture of continuous improvement and innovation. For small and medium-sized enterprises (SMEs), AI’s capabilities are especially transformative, enabling these businesses to overcome traditional barriers related to limited resources and access to markets. AI technology empowers SMEs to engage with customers worldwide, tailor marketing strategies to diverse audiences, and make data-driven decisions that optimize their global market presence. Maxwell (2023) observes that AI-driven tools help SMEs reduce customer acquisition costs and improve the accuracy of marketing initiatives, allowing them to position their brands as agile and relevant, even when competing with larger corporations. In this context, AI offers solutions across key areas of marketing providing real- time insights into global customer behavior, automating targeted outreach, and enhancing customer experience through personalization. However, SMEs in Akwa Ibom State face several barriers that hinder their ability to harness AI’s transformative technology effectively. Despite the important role SMEs play in the local economy, these enterprises often struggle with limited resources, lack of technical expertise, and insufficient infrastructure to support AI technology adoption. This challenge limits their competitiveness and ability to adapt to a rapidly evolving market landscape. In particular, SMEs in Akwa Ibom have yet to fully benefit from AI-driven automation, which can streamline repetitive tasks, improve productivity, and reduce operational costs. AI has the power to enhance customer engagement and experience by analyzing customer data to offer personalized marketing, real-time support, and tailored product recommendations, yet many SMEs lack the tools to leverage this capability effectively, impacting customer loyalty and satisfaction. Supply chain optimization is another important area where AI technology could benefit SMEs, helping them reduce lead times, manage inventory efficiently, and respond promptly to fluctuations in demand. However, many SMEs in Akwa Ibom struggle to implement AI solutions that would enhance supply chain resilience and flexibility. AI-technology forecasting can assist SMEs in making data-driven decisions, anticipating demand, and planning resources, but without access to advanced analytics, SMEs remain reactive rather than proactive. Finally, product development fueled by AI insights allows businesses to identify trends and innovate based on consumer preferences. SMEs in Akwa Ibom often lack access to such tools, limiting their capacity to introduce new or improved products that meet market demands. This research, therefore, aims to examine the impact of AI technology across these key dimensions; automation, customer engagement, supply chain optimization, forecasting, and product development on the SMEs Success in Akwa Ibom State. The main of this study is to examine the effect of Artificial Intelligence Technology on Small and Medium-Sized Enterprises success in Akwa Ibom State. The specific objectives of this study were to; Assess the effect of Automation on the Success of Small and Medium-Sized Enterprises in Akwa Ibom State. Ascertain the effect of Customer Engagement on the Success of Small and Medium-Sized Enterprises in Akwa Ibom State. Examine the effect of Supply Chain Optimization on the Success of Small and Medium- Sized Enterprises in Akwa Ibom State. Identify the effect of Forecasting on the Success of Small and Medium-Sized Enterprises in Akwa Ibom State. Investigate the effect of Product Development on the Success of Small and Medium- Sized Enterprises in Akwa Ibom State. LITERATURE REVIEW 2.1 The Conceptual Framework The conceptual framework for this study presents a model that illustrates the effect of "Artificial Intelligence technology" on and the “Small and Medium-Sized Enterprises (SMEs) Success" in Akwa Ibom State. This framework identifies key dimensions of AI Technology namely, Automation, Product Development, Supply Chain Optimization, Forecasting, and Customer Engagement as important factors influencing the SMEs Success. Each of these dimensions reflects specific areas where AI can enhance SME operations, contributing to increased productivity, market responsiveness, customer satisfaction, and strategic growth. Figure: Model of Artificial Intelligence Technology and Small and Medium-Sized Enterprises (SMEs) Success by the researcher (2025) Source: Model by the Researcher, 2025. Concept Artificial Intelligence Technology Artificial Intelligence Technology refers to AI’s ability to perform tasks requiring human intelligence, such as data processing, pattern recognition, and predictive modeling, allowing businesses to make faster, more informed decisions and maintain a competitive edge (Burke, 2023). Through real-time data analysis and advanced algorithms, AI enables companies to adopt data-driven strategies that optimize operations and improve customer experiences, positioning them for sustainable growth in a fast-evolving global market (Ghaffar et al., 2024). AI technology extends beyond basic automation, representing a strategic shift towards enhanced operational agility, where AI applications support businesses in anticipating market changes and adapting proactively. This capability is particularly advantageous for small and medium-sized enterprises (SMEs) that may lack extensive resources; with AI, they can streamline operations and effectively scale without proportionate increases in costs or workforce (Celestin &Sujatha, 2024). Thus, Artificial Intelligence Power encapsulates the strategic leverage AI provides to foster operational efficiency, competitive positioning, and long-term business success. Types of Artificial Intelligence for SMEs Reactive AI: Reactive AI systems are designed to perform specific tasks based on immediate inputs without storing past experiences or learning from them. In SMEs, this type of AI is useful for straightforward tasks like automated customer service or basic inventory management, where predefined responses or actions are triggered by real-time events (Russell, 2022). Example of Automated Customer Service are; i. Chatbots for Customer Support: SMEs can implement AI-driven chatbots on their Supply Chain Optimization Forecasting Product Development Customer Engagement Automation Small and Medium- Sized Enterprises Success INDEPENDENT VARIABLE Artificial Intelligence Technology DEPENDABLE VARIABLES websites or social media platforms to handle customer inquiries 24/7. These chatbots can provide responses to frequently asked questions, assist in tracking orders, and even help with product recommendations. ii. Automated Email Responses: SMEs can use automated email systems to respond to customer queries or feedback. For example, when a customer places an order, an automated email can confirm the order and provide shipping information, ensuring timely and consistent communication. iii. AI-technology Call Centers: SMEs can deploy automated phone systems that use AI to route calls, offer self-service options, or use natural language processing (NLP) to answer simple customer queries, improving efficiency and reducing the need

More Articles from INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH

Building National Analytics Capacity: Advances and Future Pathways

Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu

Root-Cause and Thematic Analysis for Major Incident Management: A Review

Author: Ifeanyichukwu Jeffrey Okwesa, Uchechi Mary-Linda Unamma, Uzoamaka Iwuanyanwu

Data-Quality and Single-Source-Of-Truth Frameworks for Inter- Agency Reporting: A Review

Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu

Human-In-The-Loop Decision Systems: Advances and Future Directions

Author: Funmilayo Ashore-Onisemo, Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey, Okwesa,

Roles of Oil Subsidy Removal on Transportation Cost and Water Factory in Cross River South, Nigeria

Author: Onwuzurike Peter Tobechi, Owoh Akwa Owoh, Unoh Grace Inyang, Umaru Musa