Determinants of AI adoption for small and medium-sized enterprises (SMEs) : Evidence from China

Abstract

Artificial intelligence has developed rapidly in recent years and is widely used in many fields. This thesis describes the current situation, challenges, and potential opportunities for artificial intelligence in Chinese small and medium-sized enterprises. This thesis aims to explore issues related to Chinese small and medium-sized enterprises and analysis the characteristics of this particular business environment more broadly. Moreover, the aim is to provide an overview of the development of artificial intelligence and its application in various industries, and particular to research its popularity, application methods, and technological progress among small and medium-sized enterprises in China. This thesis uses the TOE Framework to explore factors influencing AI adoption in Chinese SMEs, highlighting technology, organization, and external pressures. Qualitative methods, including interviews and thematic analysis, uncover key challenges, benefits, and policy implications. Subsequently, it provides solutions to the challenges businesses face when implementing AI, including insufficient data, limited technical complexity, and a shortage of skilled professionals. The study explored that AI adoption in Chinese SMEs boosts operational efficiency and decision-making, but faces barriers like technological limitations, financial constraints, and skills gaps. Recommendations include infrastructure improvement, employee training, and government support. Finally, the paper explores the future of artificial intelligence in Chinese small and medium-sized enterprises from the perspectives of policy, technology, and the market. Then, the potential impact of artificial intelligence on the development of Chinese small and medium-sized enterprises is explored from the perspectives of policy, technology, and the market. The thesis concludes that AI offers efficiency gains for Chinese SMEs but faces financial, technical, and talent hurdles. It recommends enhancing infrastructure, providing employee training, and utilizing government support to optimize AI adoption. This thesis aims to provide theoretical guidance and practical reference for small and medium-sized enterprises to achieve transformation and upgrading with the help of artificial intelligence technology.