Artificial Intelligence – Competitive Advantage for SMEs in the Digital Economy

Artificial intelligence (AI) has emerged as a transformative force within the digital economy, reshaping how organizations create value, compete, and innovate. For small and medium-sized enterprises (SMEs), AI represents not only a technological advancement but also a strategic resource capable of generating sustainable competitive advantages. This study explores the role of artificial intelligence as a driver of competitiveness for SMEs operating in increasingly digitalized markets. It examines the mechanisms through which AI technologies enhance operational efficiency, support data-driven decisionmaking, improve customer experiences, and foster innovation. The research highlights both the opportunities and challenges associated with AI adoption in SMEs, including resource constraints, skill gaps, organizational readiness, and ethical considerations. By integrating theoretical perspectives with practical implications, the paper emphasizes that AI is not merely a tool for automation but a catalyst for business model transformation and strategic differentiation. The findings suggest that SMEs leveraging AI effectively can achieve greater adaptability, productivity, and market responsiveness, thereby strengthening their position within the digital economy. The study contributes to a deeper understanding of how emerging technologies influence competitive dynamics and provides insights for managers, policymakers, and researchers interested in digital transformation and SME development.