Factors influencing the use of AI in SMEs: the importance of digital infrastructure

Purpose This study investigates the factors influencing the use of artificial intelligence (AI) in small- and medium-sized enterprises (SMEs), with a particular focus on a firm's digital infrastructure. It examines the interaction between these factors and the effects of digital infrastructure and AI use on perceived firm performance. Design/methodology/approach Data were obtained from a survey of a representative sample of 804 SMEs in Bulgaria. The study is based on the technology-organization-environment (TOE) framework and the resource-based view (RBV). It tests a structural model that posits the mediating role of digital infrastructure between two external and three organizational antecedents and the outcomes of AI use and perceived firm performance. Findings The results show that environmental factors and government policies affect top management support, which in turn influences digital strategy and employees' skills. External and organizational factors directly and indirectly contribute to digital infrastructure, which enhances AI use. Digital infrastructure and AI positively influence perceived firm performance. Moderation analysis reveals significant differences between AI users and non-users. Research limitations/implications The sample consists of SMEs from only one country and does not differentiate between high-tech and low-tech sectors. Practical implications SME managers need to realize that a robust digital infrastructure is a prerequisite for AI use. This requires increased attention to environmental signals, adequate governance policies, management support and employees with digital skills. Originality/value This study reveals the potential of combining TOE contextual factors with key company resources – such as digital infrastructure from the RBV – to explain AI use in SMEs.