QUALITATIVE INSIGHTS ON AI ADOPTION AMONG SMES: IMPLICATIONS FOR SUSTAINABLE DEVELOPMENT GOALS (SDGS) IN MAURITIUS AND LAGOS USING THE UTAUT FRAMEWORK

The adoption of artificial intelligence (AI) among small and medium enterprises (SMEs) is gaining global attention, yet its implementation in developing economies remains underexplored. This study investigates AI adoption in SMEs in Mauritius and Lagos, Nigeria, using the Unified Theory of Acceptance and Use of Technology (UTAUT) framework. Employing a qualitative approach, semi-structured interviews were conducted with ten SME owners and managers - five from each region - to examine key factors influencing AI adoption. Findings reveal that AI integration has enhanced business operations, particularly in inventory management, customer engagement, and booking systems, leading to notable improvements in efficiency and sales. For example, SMEs in Mauritius reported a 30% increase in online reservations due to AI-enabled booking systems, while Lagos businesses benefit from AI-powered chatbots managing 70% of customer inquiries. However, significant challenges persist. Data privacy and security concerns were prominent, with 80% of Mauritius respondents and 60% in Lagos expressing apprehensions. Regulatory compliance emerged as a critical issue, suggesting that we require clearer guidelines to support AI implementation. Financial constraints and a lack of technical expertise further hinder widespread adoption, limiting SMEs’ ability to maximize AI’s potential. Despite these challenges, many respondents acknowledged AI’s role in driving business innovation, although some remained skeptical, emphasizing the necessity for stronger legal protections and ethical oversight. The study points out that it requires tailored policies, financial incentives, and AI literacy programs to support SMEs in leveraging AI for sustainable growth. Aligning with Sustainable Development Goal (SDG) 9, which promotes innovation and infrastructure, this research highlights AI’s transformative potential in enhancing the competitiveness of SMEs in developing economies. Future studies should explore AI adoption across additional sectors and integrate quantitative analysis for broader generalizability.