An Examination of the Opportunities and Challenges of Conversational Artificial Intelligence in Small and Medium Enterprises

Abstract

This study aims to examine the potential benefits and challenges associated with conversational artificial intelligence (CAI) implementation within small and medium enterprises (SMEs). The study employs a comprehensive literature review and thematic analysis as the primary data collection and interpretation methods. CAI technologies are examined, including chatbots, virtual assistants, and automated response systems. These technologies offer SMEs opportunities to automate customer service operations, gain valuable customer insights, and enhance operational efficiency. However, their integration also presents technical difficulties, financial constraints, data privacy and security concerns, and inherent CAI limitations. The study results provide a nuanced understanding of CAI’s role in SMEs, offering insights into practical applications, potential benefits, and hurdles. The findings highlight SMEs’ need to strategically approach AI implementation, balancing the potential benefits and associated challenges. The key conclusion drawn from this study is that the strategic and well-planned adoption of CAI can significantly benefit SMEs. However, it should be viewed as an augmentation of existing operations rather than a complete replacement. This study also identifies the need for future research, particularly empirical studies examining the implementation of CAI in SMEs and exploring its long-term impacts and ethical implications.