Leveraging Artificial Intelligence (AI) For Business Sustainability: A Small and Medium Scale Enterprises Dimension

Abstract

Small and Medium Scale Enterprises in Nigeria encounter persistent difficulties transitioning to sustainable models, mostly due to constrained resources and volatile environmental conditions. Hence, this study examined how leveraging AI for sustainable SME dimensions can improve the sustainability of SMEs' market share in resource-constrained environments. The main aims were to assess the correlation between AI-driven climate forecasting and the sustainability of market share and to investigate the extent of the relationship between AI-facilitated resource allocation and sustainable market positioning. A survey study design was utilised to collect data from a sample of 10 chosen SMEs in the region's hospitality industry. The study employs multiple regression analysis to investigate the predictive efficacy of AI technologies in facilitating sustainable practices. The findings demonstrate a robust positive association between AI climate prediction and market share sustainability (r = .890, p < .001), as well as between AI resource allocation and sustainability (r = .867, p < .001). The findings indicated that the implementation of AI can substantially enhance market resilience by allowing SMEs to predict environmental effects and optimise resources efficiently. In conclusion, utilising AI technologies offers a feasible approach for SMEs aiming to adopt sustainable practices despite budgetary limitations. It was advised, among others, that to improve the sustainability of market share through AI-driven climate forecasting, Travel and Tour Agencies in Anambra State should invest in or collaborate with suppliers of predictive climate analytics software.