Digital Competences for utilising AI Tools in SMEs: A Perspective from a Lower Income Economy

Technological development forced managers and owners of small and medium enterprises (SMEs) globally to rely on technological tools and utilising them to improve business performance. The literature indicates that AI tools and IT tools are effective in transforming business performance and business operations in the SMEs sector. In this aspect, the study aimed to explore the intention of managers and owners of SMEs to utilise AI and IT tools in their enterprises and how this intention is influenced by digital competences of managers. The study adopted cross sectional design and standardised scales and collected data conveniently from 302 individuals. The data was analysed using PLS-SEM. The findings indicated a moderate extent of intention to utilise AI and IT tools and the four dimensions of digital competences. Moreover, the findings revealed that managers’ intention to utilise technological tools is significantly influenced by information and data literacy along with problem solving, while it is not affected by collaboration and communication and the safety and security competences.