Leveraging Information Technology for Sustainable Business Growth: A Strategic Approach to Digital Transformation in SMEs

This study investigates the transformative role of Artificial Intelligence (AI) in improving customer experience and business performance across various industries. As AI technologies continue to advance, their application in customer service, operational optimization, and decision-making has shown significant potential in reshaping business strategies. This research explores how AI tools, such as machine learning, predictive analytics, and automated customer service systems, contribute to enhancing customer satisfaction, driving revenue growth, and reducing operational costs. Through a mixed-methods approach, data were collected via surveys and interviews from businesses in sectors such as retail, telecommunications, hospitality, and banking. The findings reveal that businesses adopting AI solutions report considerable improvements in customer satisfaction and operational efficiency, particularly in e-commerce and telecommunications. However, challenges such as data privacy concerns, integration complexities, and the need for specialized skills remain barriers to full AI adoption. This paper highlights the importance of addressing these challenges to fully harness AI’s potential and provide actionable recommendations for businesses looking to integrate AI into their operations effectively.