Abstract

ABSTRACT This study investigates Artificial Intelligence (Awareness, Knowledge, Empowerment, Implementation) on competitiveness and the mediating role of innovations (Social Innovation, Environmental Innovation, and Technological Innovation). We employed the Open Innovation theory (OIT). The data from 480 SMEs were analyzed using SmartPLS. The findings elucidate that the relationship between AI (awareness, empowerment, implementation) and competitiveness is positively significant. Also, there is a partial mediation effect between AI awareness and competitiveness. Technological innovation partially mediates between AI (Implementation and Knowledge) and competitiveness. Policymakers should initiate strategies to integrate AI innovations. The study extends the OIT to create new technological, social and environmental innovations.

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