Artificial Intelligence for Sustainability: Evidence from select Small and Medium Enterprises in the Philippines

Abstract

Artificial intelligence (AI) is an emerging technology in small and medium enterprises (SMEs). Recently, SMEs have growing interests in using artificial intelligence to improve business performance. However, SMEs are confronted with sustainability, which remains a research gap. This paper presents the first evidence of select SMEs using artificial intelligence in business for sustainability in the Philippines, through a qualitative study involving managers. Results show that a few SMEs have AI applications in business that contributes to sustainability. While there are on-going sustainability efforts, most SMEs are in the incremental and situational development levels. Also, this study confirms that insufficient physical and technological infrastructure, availability of data, customers privacy and security, insufficient legal frameworks, management support, and lack of AI adoption strategy are evident issues and challenges that limits the progress AI application in business for sustainability. This study presents some implications to SMEs, policy-making and future work to progress AI for sustainability.