The Role of Artificial Intelligence in Enhancing Decision-Making in Ghanaian Small and Medium Enterprises (SMEs)

Abstract

The study evaluates the extent to which small and medium-sized enterprises in Ghana implement artificial intelligence tools to facilitate business decision-making using concurrent triangulation mixed-methods descriptive survey design. A multi-stage sampling technique was employed to select a sample of 400 SME owners and administrators, but 4 responses were invalid and misleading, which resulted in 396 responses. To guarantee inclusiveness, structured questionnaires (open and closed questions) were implemented, which included both online and paper-based formats. Descriptive statistics and PLS-SEM were employed to analyze quantitative data, while thematic analysis was implemented to analyze qualitative responses. The results indicate that small and medium-sized enterprises in Ghana are progressively utilizing artificial intelligence tools to enhance decision-making, automate routine tasks, and facilitate long-term planning. Though the adoption levels of AI differ among SMEs, many regard it as a practical instrument, contingent upon their digital skills and resources. Businesses that possess superior infrastructure and digital expertise are employing AI more efficiently to enhance strategic decisions, operations, and customer service. Nevertheless, adoption is still hindered by a variety of obstacles, such as inadequate infrastructure, funding constraints, a scarcity of competent personnel, low awareness, and ambiguous regulations. These obstacles are particularly severe for small and medium-sized enterprises that are resource-limited. Given these results, it is imperative that policymakers and stakeholders allocate resources to the development of digital infrastructure in small and medium-sized enterprises. It is recommended that capacity-building programs be implemented to enhance digital literacy and offer participants practical AI training.