Adopting Artificial Intelligence in Small And Medium Enterprises: Exploring Administrative Challenges and Strategic Pathways For Effective Implementation

Researchers increasingly recognise Artificial Intelligence (AI) as a transformative force in organisational management, yet Small and Medium Enterprises (SMEs) face unique challenges in adopting these technologies. This study examines the administrative challenges and strategic pathways involved in adopting AI in SMEs. The research team used a qualitative design and collected data through semi-structured interviews, focus group discussions, and document reviews with SME administrators across multiple sectors.Findings reveal four significant administrative challenges: financial constraints, skills deficits, organisational resistance to change, and policy uncertainty. These barriers restrict SMEs' ability to integrate AI technologies effectively. However, SMEs demonstrate resilience through strategic pathways, including incremental adoption of AI solutions, staff training and capacity building, partnerships with technology providers and research institutions, and collective advocacy for policy support. The study highlights that AI adoption is not merely a technical process but a complex administrative and institutional phenomenon shaped by leadership readiness, organisational culture, and external policy environments.The study concludes that effective AI adoption requires a dual approach: strengthening internal organisational strategies while ensuring supportive external institutional frameworks.