An Examination of Artificial Intelligence Adoption for Sustainable Financial Management among Zimbabwean SMEs

Small and Medium Enterprises (SMEs) form the backbone of Zimbabwe’s economy, providing jobs, driving innovation, and sustaining livelihoods. Yet, many of these enterprises struggle with financial management, facing challenges such as limited access to finance, inadequate record‑keeping, and a shortage of managerial expertise. The rise of Fourth Industrial Revolution (4IR) technologies, particularly Artificial Intelligence (AI), offers a new pathway for SMEs to overcome these barriers. AI has the potential to simplify bookkeeping, strengthen decision‑making, and improve resilience, but its adoption in Zimbabwe remains underexplored. This study seeks to examine the extent to which Zimbabwean SMEs have embraced artificial intelligence in pursuit of sustainable financial management practices, and to identify the factors that influence this adoption. Using the Diffusion of Innovation (DOI) theory as a guiding framework, a survey of 400 SME owner‑entrepreneurs across five major cities and four sectors was conducted. Structural equation modelling was applied to test the influence of technological infrastructure, managerial competence, financial literacy, regulatory environment, and cost of implementation on AI adoption. The findings indicate a limited adoption of AI tools for sustainable financial management among Zimbabwean SMEs, constraining their potential contribution to economic growth. Cost emerges as the most significant barrier, whereas managerial competence and financial literacy stand out as critical enablers. The practical implications underscore the need for investment in digital infrastructure, the design of targeted training programmes, the integration of financial literacy into SME support frameworks, and the implementation of policy measures to reduce adoption costs. Equally critical is the translation of the National AI Strategy (2026–2030) into actionable support mechanisms that equip SMEs with sustainable financial management capabilities. Ultimately, the study demonstrates that, with appropriate institutional and policy support, Zimbabwean SMEs can harness AI to strengthen financial management and unlock pathways to sustainable growth.