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Small and Medium Enterprises (SMEs) in South Africa previously faced challenges due to limited resources, restricted access to technology, and the need to constantly adapt to a dynamic business environment. The introduction of Generative Artificial Intelligence (AI) emerged as a potential solution to these issues, promising to enhance operational efficiency and strategic decision-making. As a representative of developing economies, South Africa experienced a growing interest in AI technologies. This study was conducted to explore the impact of generative AI on SME productivity in South Africa, an area which had been underexplored. Employing a qualitative methodology, the study evaluated the current state and implications of generative AI in South African SMEs. It involved in-depth interviews to gather perceptions, experiences, challenges, and benefits from SME owners and managers regarding the adoption of generative AI technologies. The findings analysed via R Statistical Software revealed significant insights into the specific areas where generative AI substantially impacted SME productivity. It also identified the challenges and opportunities associated with the adoption of generative AI by SMEs, as well as the potential long-term implications. Key findings included notable improvements in data-driven decision-making, operational efficiencies, and market expansion strategies. However, the study also highlighted barriers such as the lack of technical expertise, initial setup costs, and concerns over data security. Overall, the impact of generative AI on SMEs in South Africa was found to be predominantly positive, paving the way for further technological advancements and adoption in the sector.

Small and Medium Enterprises (SMEs) in South Africa previously faced challenges due to limited resources, restricted access to technology, and the need to constantly adapt to a dynamic business environment. The introduction of Generative Artificial Intelligence (AI) emerged as a potential solution to these issues, promising to enhance operational efficiency and strategic decision-making. As a representative of developing economies, South Africa experienced a growing interest in AI technologies. This study was conducted to explore the impact of generative AI on SME productivity in South Africa, an area which had been underexplored. Employing a qualitative methodology, the study evaluated the current state and implications of generative AI in South African SMEs. It involved in-depth interviews to gather perceptions, experiences, challenges, and benefits from SME owners and managers regarding the adoption of generative AI technologies. The findings analysed via R Statistical Software revealed significant insights into the specific areas where generative AI substantially impacted SME productivity. It also identified the challenges and opportunities associated with the adoption of generative AI by SMEs, as well as the potential long-term implications. Key findings included notable improvements in data-driven decision-making, operational efficiencies, and market expansion strategies. However, the study also highlighted barriers such as the lack of technical expertise, initial setup costs, and concerns over data security. Overall, the impact of generative AI on SMEs in South Africa was found to be predominantly positive, paving the way for further technological advancements and adoption in the sector.