Generative artificial intelligence in small and medium enterprises: navigating its promises and challenges

Abstract

The latest technological developments in generative artificial intelligence (GenAI) offer powerful capabilities to small and medium enterprises (SMEs) as they facilitate the democratization of scalability and creativity. With little technical expertise or financial resources, SMEs can leverage this technology to streamline work processes and unleash innovation, improving their product offerings and long-term competitiveness. In this article, we discuss how SMEs can navigate both the promises and challenges of GenAI and offer a roadmap for deploying the technology. We then introduce a sailing metaphor that reveals key strategic dimensions for GenAI deployment: competency of employees, effective leadership and work values, organizational culture, collaboration and cooperation, and relationships with third parties. We conclude with practical recommendations for successfully deploying GenAI in SMEs.