Technological progress causes structural changes in company strategies and business models, while effectively meeting customer and improving the cognitive ability of organizations. Through this advanced technology firm has to create a knowledge-based environment, which acts as a significant source for competency in the industry. In business environment, Artificial Intelligence (AI) has emerged as advanced technology to promote marketing practices through social media. However, adoption of artificial intelligence is relatively difficult to small business units rather than large firms. Small businesses need to focus on Artificial Intelligence-based social media marketing and investments in AI. Previous research has focused on implementing artificial intelligence in marketing, but very few studies focused on the AI-based social media marketing for small businesses that gives scope for present study. Therefore, present paper emphasized on AI-based social media marketing, challenges, and benefits for small businesses and explores the possibility of implementing AI.