THE IMPACT OF AI INFRASTRUCTURES ON SMALL AND MEDIUM ENTERPRISES (SMES) PERFORMANCE IN EDO STATE NIGERIA

Artificial Intelligence (AI) is rapidly transforming industries globally. However, its adoption by Small and Medium Enterprises (SMEs) in developing countries like Nigeria remains limited. This study aims to investigate the impact of AI infrastructures on the performance of SMEs in Edo State, Nigeria. The research explores the relationship between AI infrastructure components, including data, computational power, and skilled workforce, and key performance indicators of SMEs. Through a mixed-methods approach, the study analyzes the challenges and opportunities associated with AI adoption, such as data quality, computational resources, and lack of technical expertise. The findings suggest that AI infrastructure can significantly enhance SME performance by improving decision-making, optimizing operations, and enabling innovation. However, several barriers hinder AI adoption, including high costs, lack of awareness, and regulatory challenges. To address these issues, the study proposes strategies such as government support, capacity-building programs, and collaborative partnerships. By understanding the impact of AI infrastructures on SMEs, policymakers, businesses, and researchers can work together to accelerate AI adoption and unlock its potential for economic growth and social development in Nigeria.