The Role of AI in Enhancing Decision-Making in Small and Medium Enterprises (SMEs)

This study investigates the transformative role of artificial intelligence (AI) in enhancing decision-making processes within small and medium enterprises (SMEs). By focusing on AI applications such as predictive analytics, the research highlights how these tools improve operational efficiency, optimize resource management, and facilitate real-time decision-making. Employing a quantitative methodology, data was collected from 100 SMEs in the Angeles City, Philippines through structured surveys, which were analyzed using descriptive statistics, regression, and correlation techniques. The findings reveal that AI significantly enhances decision-making processes, leading to improved business outcomes, including increased operational efficiency and profitability. Notably, 75% of the surveyed SMEs reported using predictive analytics, resulting in heightened decision- aking speed and accuracy. This study underscores the critical importance of AI in empowering SMEs to navigate market challenges effectively and sustain competitive advantages in an increasingly data-driven business landscape.