Abstract:
In this digital era, artificial intelligence (AI) has emerged as one of the critical tools
for boosting innovation, productivity, and competitiveness in the global market. In
that context, the present study aims to analyse the key determinants influencing the
adoption of artificial intelligence among Small and Medium Enterprises operating in
Jaffna, Sri Lanka. Therefore, the researcher employed the framework Technology
Organisation-Environment (TOE) to give a clear picture of the factors influencing AI
adoption among small businesses in Jaffna. The present study is based on a cross
sectional time horizon, capturing the current state of AI adoption and its determinants
at a single point in time. In that context, data were collected from 150 Small and
Medium Enterprises owners through a structured, self-administered questionnaire
based on a 5-point Likert scale. The data collected were analysed by the SPSS
software package using statistical analysis, including reliability analysis, descriptive
analysis, the Shapiro-Wilk test, Pearson correlation, and multiple linear regression
analysis. The findings of the study proved that technological readiness, perceived
usefulness, and organisational innovativeness have a positive impact on AI adoption,
while financial constraints negatively influence AI adoption by SMEs in Jaffna. In
that context, the present study contributed to policymakers, technology providers, and
small business owners in formulating strategies that foster AI adoption. Further, it is
recommended to conduct future research by exploring longitudinal impacts and the
role of external support mechanisms in enhancing technological uptake among small
businesses.
