Unveiling barriers and drivers of AI adoption for digital marketing in Malaysian SMEs

Artificial Intelligence (AI) offers significant benefits for organizations by resolving various issues, but its adoption is not always smooth, particularly for small and medium enterprises (SMEs) with limited budgets. While the drivers and barriers to AI adoption have been extensively studied, there is a lack of scientific publications on AI adoption in digital marketing (DM) among Malaysian SMEs. This study examines how perceived usefulness (PU), perceived ease-of-use (PEOU), and perceived barriers (PB) influence the intention to adopt AI in Malaysian SMEs. Data from 301 valid questionnaires were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM) on SmartPLS 4.0. The results show that these factors explain 23 % of the variance in AI adoption intention. PU is the strongest driver, while PEOU has a weaker but significant effect. PB significantly hinders adoption, indicating the need to address technological, organizational, and market challenges. The weak but significant relationship between PU and PEOU suggests that businesses do not necessarily equate ease of use with usefulness, implying that AI solutions should be marketed based on their tangible business value rather than just user-friendliness. These findings provide practical guidance for businesses and policymakers aiming to promote AI adoption in the digital marketing sector. The research offers valuable insights into the challenges and opportunities of AI for Malaysian SMEs, serving as a foundation for informed decision-making and strategic planning.