ARTIFICIAL INTELLIGENCE AND PRODUCTIVITY IN NIGERIAN SMALL SCALE BUSINESSES: A REVIEW OF LITERATURE

Abstract

This study reviewed the adoption and impact of Artificial Intelligence (AI) on the operations of Small-Scale Businesses (SSBs) in Nigeria, focusing on the extent of integration, resulting operational improvements, and prevailing challenges. Drawing insights from global and local empirical studies, the research employed the Technology Acceptance Model (TAM) as a theoretical framework to analyze perceptual factors influencing AI uptake. Findings revealed that while AI offers transformative potential—enhancing operational efficiency, customer engagement, and data-driven decision-making—its adoption among Nigerian SSBs remains limited. This is largely due to infrastructural deficits, financial constraints, digital illiteracy, and a persistent skills gap. The study concluded that despite these limitations, targeted policy interventions, capacity-building initiatives, and strategic partnerships can significantly drive AI adoption and productivity growth in Nigeria’s SME sector. The research contributed to the growing discourse on digital transformation in developing economies and provides practical recommendations for stakeholders.