Ecosystem Theory and the Adoption of Artificial Intelligence in SMEs

Given the various risks involved in incorporating artificial intelligence (AI) and machine learning into their business operations, firms are at an inflection point about how to do so. In this paper, we propose that for small medium-sized enterprises (SMEs), which lack capital, large quantities of data, and expertise, the best solution would be to join a pre-existing (or developing) ecosystem. From the two potential alternatives available to an SME, going it alone or depending on a larger corporation, we argue for a third option, the joining of an ecosystem of organizations that use AI systems in their operations, as the golden mean. We conclude with some practical and theoretical implications.