Abstract This study examines how Small and Medium-sized Enterprises (SMEs) adopt Artificial Intelligence (AI) and the implications for organizational performance. Based on a systematic literature review of 68 peer-reviewed articles indexed in Scopus, the analysis draws on the Technology-Organization-Environment framework and the Diffusion of Innovations theory to identify the main factors shaping AI integration in SMEs. The findings indicate that AI adoption is associated with improvements in efficiency, decision-making, and competitiveness, but its outcomes depend on organizational readiness, trust, and alignment with strategic objectives. At the same time, barriers such as limited resources, technological complexity, and cultural resistance continue to constrain adoption. The review also identifies gaps in performance measurement, sector-specific adoption, and behavioral perspectives, suggesting directions for future research. By focusing on the SME context, this study contributes to the literature by clarifying the organizational conditions under which AI adoption can enhance performance and competitiveness, while offering practical insights for managers and policymakers.
Landini et al. (Fri,) studied this question.