Over the past few decades, Artificial Intelligence has dominated every area of the global economy. It is now a crucial component of business operating strategies, facilitating increased productivity and operational efficiency while delivering efficient customer service and customer satisfaction. The study's purpose was to look at the factors that affect and what happens when Small and Medium Enterprises (SMEs) businesses in South Africa embrace and use Artificial Intelligence. The primary data collection technique was in gathering the data, and all 51 entrepreneurs from Cape Town, Johannesburg, and Port Elizabeth were selected to gather utilizing an online questionnaire. The data was analysed using quantitative data analysis. The adoption and deployment of artificial intelligence, as well as the benefits of such technology for SMEs, were all examined. The study's findings indicate that elements including organizational culture, competitive pressure, and customer predict SMEs' adoption of Artificial Intelligence. While SME adoption of Artificial Intelligence is not supported by employee or business size statistically. The results further demonstrate that Artificial Intelligence improves SMEs in terms of operational efficiency and higher production and customer service and customer satisfaction. On the other hand, the decrease in operational costs was statistically disproved as a benefit of Artificial Intelligence. This study has outlined significant elements of Artificial Intelligence’s adoption by SME enterprises and it benefits.

Keywords: Artificial Intelligence: SMEs; Organisational Culture: Competitive Pressure: Customer Service and Satisfaction: Operational Efficiency and Productivity