As the driver of the next wave of digitalisation, Artificial Intelligence has become prominent and is seen as central to the digital transformation of society. Its business applications are today numerous; however, AI adoption varies greatly across countries, sectors and firm sizes which poses a problem for economic development and regional competitiveness.

SMEs face a series of barriers in adopting AI: a lack of data culture (or data readiness); a lack of awareness about what AI could bring as well as its risks; a need for reskilling and retraining managers and workers; high investments with unknown returns; and reputational, business and legal risks.

This project aims to improve policies for encouraging the uptake of AI by SMEs. To foster AI diffusion in the economy, the project will explore issues related to the opportunities and risks of AI, the governance of AI/SME policies, access to finance, access to human capital and skills, and networks and collaboration.