From Awareness to Action: Preparedness of SMEs for Artificial Intelligence Implementation in North Macedonia and Serbia

Artificial Intelligence (AI) is growingly recognized as a critical factor in fostering innovation and strengthening competitiveness within contemporary enterprises. As regards digital transformation, AI technologies are reshaping traditional operating models and enabling the optimization of core operating processes across various sectors. Small and medium-sized enterprises (SMEs) in the Republic of North Macedonia and the Republic of Serbia despite being key drivers of economic activity and employment, encounter considerable challenges in integrating AI into their daily operations, in contrast to larger enterprises that typically possess greater resources and structural capacities for technological adoption. The focus of the paper is to assess the level of awareness, viewpoints, and preparedness of entrepreneurs from both countries regarding the implementation of AI within their business strategies. Accordingly, the research examines the main sources of information available to SMEs, the extent to which planning processes incorporate AI adoption, the perceived limitations and associated risks, as well as the need for adequate professional expertise and institutional support to advance digital transformation.