The Impact of Artificial Intelligence on the Sustainability and Operational Efficiency of SMEs in the Kingdom of Bahrain

Abstract

Drawing from the technological innovation and sustainability theories, this chapter aims to establish how artificial intelligence (AI) can help small and medium enterprises (SMEs) enhance efficiency, utilization of resources and meet the social, economic and environmental goals of Bahrain’s Vision 2030. The literature and current cases are included in the study, and it is found that AI is useful in operations, analytics and customer relationships that lead to productivity and competitiveness. In addition, it can also assist in sustaining the world by reducing energy consumption, minimizing waste and promoting proper management of businesses through Internet of Things, big data and machine learning. Fintechs in general emerge as one of the most significant enablers of SME finance, primarily through the application of AI. However, this chapter identifies some limitations, which are regulatory policies, infrastructural development and data factors that prevent the implementation of AI. Last but not least, this research provides theoretical advancements to the AI literature concerning the emerging economy of the Gulf region and practical implications and recommendations for policymakers, developers and SMEs who are involved in the AI adoption process for sustainable growth and prosperity in the region.