Ethical considerations in AI use for SMEs and supply chains: Current challenges and future directions

Abstract

The integration of Artificial Intelligence (AI) in Small and Medium-sized Enterprises (SMEs) and supply chains has revolutionized operational efficiencies and decision-making processes. This review paper aims to explore the ethical implications of AI adoption in these sectors, identifying current challenges and proposing future directions for ethical AI deployment. Through an extensive review of existing literature, the paper examines key ethical concerns such as data privacy, bias in AI algorithms, transparency, and the socio-economic impact on the workforce. The findings indicate that SMEs face unique ethical challenges due to their limited resources and expertise, which exacerbate issues related to AI implementation. Additionally, supply chains grapple with transparency and accountability, necessitating immediate attention to ensure ethical practices. The review concludes that establishing a robust ethical framework is crucial for guiding AI integration in SMEs and supply chains. It recommends the development of standardized ethical guidelines, enhanced stakeholder engagement, and increased investment in AI literacy and infrastructure. Future research should focus on creating adaptable ethical models that evolve alongside technological advancements and industry needs, ensuring that AI contributes to sustainable and equitable growth. This paper contributes to the ongoing discourse on ethical AI, offering actionable insights for policymakers, business leaders, and researchers dedicated to fostering responsible AI practices in SMEs and supply chains. Keywords: Ethical AI, SMEs (Small and Medium-sized Enterprises), Supply Chains, Algorithmic Bias, Data Privacy, Transparency, Accountability, AI Trust, Regulatory Compliance, Stakeholder Engagement, Job Displacement, Explainable AI (XAI), Workforce Reskilling, Sustainable AI Practices, AI Ethics Frameworks.