Technological Opportunities and Barriers to Artificial IntelligenceAdoption among Small and Medium Enterprises in Mogadishu, Somalia

Abstract

Artificial intelligence (AI) may help small and medium enterprises (SMEs) automate processes, use data more effectively, improve customer service, and support managerial decisions. This study describes AI-tool use, willingness to invest, perceived adoption factors, barriers, and opportunities among SME owners, managers, supervisors, and employees in Mogadishu, Somalia. A quantitative cross-sectional survey used an adapted questionnaire and convenience sampling. Of 245 questionnaires administered, 244 valid responses were analyzed in SPSS version 24 using frequencies and percentages. Within this sample, 90.2% of respondents reported current AI-tool use; ChatGPT was the most frequently reported single tool, and many respondents used combinations of tools. Only 10.6% described their organizations as willing or very willing to invest, while 45.1% did not specify an investment position. Data accessibility and connectivity (30.3%) and top-management support (17.2%) were the most frequently reported individual adoption factors. Financial constraints (22.1%) and limited technical skills (18.4%) were the leading individual barriers, while efficient data use (18.9%) and process automation (18.4%) were the leading individual opportunities. The results reveal a gap between widespread respondent-level use and formal organizational investment. Because the sample was nonprobability-based and included people already involved with AI, the percentages should not be interpreted as population estimates of AI adoption among all Mogadishu SMEs. Formal strategy, management support, staff capability, reliable data and connectivity, financing, and data-security safeguards are needed for more sustainable organizational adoption.