Artificial Intelligence Adoption in Small and Medium Enterprises: A Systematic Literature Review under the Lens of Absorptive Capacity Framework

This study examines the capabilities of small and medium-sized organisations (SMEs) to adopt artificial intelligence (AI) by analysing the existing literature and prominent related themes. The research classifies thirty peer-reviewed papers from reputable databases including Scopus, Web of Science, and Taylor & Francis. We employed the thematic analysis which revealed eight themes associated with SMEs' capabilities and AI adoption, namely digitalisation, technology, manufacturing, innovation, management, knowledge, decision-making, and system, utilising the four dimensions of ACAP's framework. The dimensions of acquisition and assimilation pertaining to the potential of absorptive capacity (PACAP), which includes SMEs' ability to obtain new knowledge from external sources, and realised absorptive capacity (RACAP), which encompasses companies' ability to integrate new knowledge into their daily operations.