Barriers to Adopting Artificial Intelligence Tools Among Small andMedium Enterprises (SMEs) in Somalia

Abstract

Artificial intelligence (AI) offers significant opportunities to improve efficiency and competitiveness in small and medium enterprises (SMEs), yet adoption among Somali SMEs remains limited. This paper examines the key barriers affecting the adoption of AI tools among SMEs in Mogadishu, Somalia, focusing on financial constraints, the digital skills gap, and awareness of AI tools. A quantitative, descriptive-correlational design was used, and data were collected through a structured, pilot-tested questionnaire administered to 70 SME owners and managers across the retail, service, and hospitality sectors. The data were analyzed using descriptive statistics, reliability testing, Pearson correlation, and multiple linear regression. All four constructs demonstrated strong internal consistency (Cronbach’s alpha between 0.846 and 0.888). The results show that AI adoption among the sampled SMEs remains low, with fewer than half of the respondents reporting current use of any AI tool. Financial constraints and the digital skills gap were negatively associated with AI adoption, whereas awareness of AI tools was positively associated with adoption; awareness emerged as the strongest predictor when all three barriers were considered jointly. The regression model explained approximately 26% of the variance in adoption levels. These findings suggest that limited awareness, rather than cost or skills alone, may be the most influential barrier constraining AI adoption among Somali SMEs. The paper recommends that policymakers, educational institutions, and ICT service providers prioritize awareness-building initiatives alongside affordable pricing and accessible digital skills training. The findings contribute context-specific evidence from a fragile, postconflict economy, a setting largely absent from existing AI adoption research, and offer a practical foundation for future policy and research targeting Somalia’s SME sector.