A conceptual framework for Artificial Intelligence (AI) readiness and adoption among Small and Medium Enterprises (SMEs) entrepreneurs in West Sumatra, Indonesia

Abstract

Small and Medium Enterprises (SMEs) constitute the backbone of Indonesia’s economy, including in West Sumatra, where the business landscape encompasses a diverse range of traditional enterprise clusters. However, the ability of SMEs entrepreneurs to adopt advanced digital technologies such as Artificial Intelligence (AI) remains at a very early stage. Their understanding of and readiness to adopt AI are minimal and are accompanied by considerable technological concerns, which are believed to hinder the adoption of this technology among SMEs entrepreneurs. Accordingly, this conceptual paper discusses AI readiness and adoption among SMEs entrepreneurs in West Sumatra by examining technology readiness and acceptance, entrepreneurial orientation, and digital literacy.