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This study examines how Artificial Intelligence (AI) adoption in digital marketing enhances the competitiveness of small retail businesses (SRBs) in Cape Town, South Africa. Guided by an integrated Technology–Organisation–Environment (TOE) and Unified Theory of Acceptance and Use of Technology (UTAUT) framework, a systematic review following PRISMA 2020 guidelines was conducted across eight databases, resulting in the inclusion of 37 empirical and conceptual studies published between 2015 and 2025. Findings show that AI adoption remains modest, with only 39% of small businesses planning to develop internal AI capabilities by 2025. The most common entry points are ChatGPT, text-to-image generators, predictive analytics systems, and WhatsApp-based chatbots. Businesses using these tools reported an average 11% increase in sales and a 28% reduction in marketing costs within six months. However, adoption is constrained by infrastructure challenges (patchy broadband, power cuts, high cloud costs), organisational limitations (low digital literacy, managerial scepticism, fear of automation), and socio-cultural barriers (language diversity and customer mistrust of chatbots). This study provides the first Cape Town-focused synthesis linking AI adoption to SME competitiveness through the TOE–UTAUT framework. It recommends policy measures to improve digital infrastructure and data governance, practical initiatives to strengthen AI literacy and ethical awareness, and theoretical extensions to contextualise socio-cultural dimensions of AI use. Collectively, these insights contribute to advancing inclusive, trust-based digital transformation in Cape Town’s small business ecosystem.

This paper aims to evaluate how the type of streamer (human vs. AI) influences consumer desire in live-streaming commerce through socio-cognitive and motivational mechanisms. Building on the CASA framework, Self-Determination Theory (SDT), and the Model of Goal-Directed Behavior (MGB), this study examines whether human and AI streamers differentially generate perceived empathy, which then activates intrinsic and extrinsic motivations leading to consumer desire. This paper also aims to test whether personal involvement and skepticism moderate the empathy–motivation pathway. A between-subjects experimental design was used to randomly assign participants to view identical livestreaming scripts presented by either a human or a humanoid AI streamer. Data from all 277 Chinese livestreaming participants were analyzed using PLS-SEM. The key findings show that (i) perceived empathy is significantly higher for human streamers than AI streamers, (ii) perceived empathy significantly boosts intrinsic motivation and consumer desire, with a smaller effect on extrinsic motivation, and (iii) intrinsic motivation, but not extrinsic motivation, is a significant predictor of consumer desire. Additionally, personal involvement strengthens the link between empathy and intrinsic motivation, while skepticism weakens the motivational pathways—especially in AI-based interactions. This research reveals that empathy is the main psychological link between streamer identity and consumer desire, and that intrinsic motivation is the dominant mechanism driving consumer engagement in live commerce, grounded in warmth and relatedness. The findings also indicate that emotional authenticity and the fulfillment of psychological needs remain crucial determinants of consumer desire, even in AI-mediated retail. Practical implications include enhancing empathetic communication and balancing the use of human and AI streamers in digital commerce.

This paper aims to evaluate how the type of streamer (human vs. AI) influences consumer desire in live-streaming commerce through socio-cognitive and motivational mechanisms. Building on the CASA framework, Self-Determination Theory (SDT), and the Model of Goal-Directed Behavior (MGB), this study examines whether human and AI streamers differentially generate perceived empathy, which then activates intrinsic and extrinsic motivations leading to consumer desire. This paper also aims to test whether personal involvement and skepticism moderate the empathy–motivation pathway. A between-subjects experimental design was used to randomly assign participants to view identical livestreaming scripts presented by either a human or a humanoid AI streamer. Data from all 277 Chinese livestreaming participants were analyzed using PLS-SEM. The key findings show that (i) perceived empathy is significantly higher for human streamers than AI streamers, (ii) perceived empathy significantly boosts intrinsic motivation and consumer desire, with a smaller effect on extrinsic motivation, and (iii) intrinsic motivation, but not extrinsic motivation, is a significant predictor of consumer desire. Additionally, personal involvement strengthens the link between empathy and intrinsic motivation, while skepticism weakens the motivational pathways—especially in AI-based interactions. This research reveals that empathy is the main psychological link between streamer identity and consumer desire, and that intrinsic motivation is the dominant mechanism driving consumer engagement in live commerce, grounded in warmth and relatedness. The findings also indicate that emotional authenticity and the fulfillment of psychological needs remain crucial determinants of consumer desire, even in AI-mediated retail. Practical implications include enhancing empathetic communication and balancing the use of human and AI streamers in digital commerce.

This study examines how Artificial Intelligence (AI) adoption in digital marketing enhances the competitiveness of small retail businesses (SRBs) in Cape Town, South Africa. Guided by an integrated Technology–Organisation–Environment (TOE) and Unified Theory of Acceptance and Use of Technology (UTAUT) framework, a systematic review following PRISMA 2020 guidelines was conducted across eight databases, resulting in the inclusion of 37 empirical and conceptual studies published between 2015 and 2025. Findings show that AI adoption remains modest, with only 39% of small businesses planning to develop internal AI capabilities by 2025. The most common entry points are ChatGPT, text-to-image generators, predictive analytics systems, and WhatsApp-based chatbots. Businesses using these tools reported an average 11% increase in sales and a 28% reduction in marketing costs within six months. However, adoption is constrained by infrastructure challenges (patchy broadband, power cuts, high cloud costs), organisational limitations (low digital literacy, managerial scepticism, fear of automation), and socio-cultural barriers (language diversity and customer mistrust of chatbots). This study provides the first Cape Town-focused synthesis linking AI adoption to SME competitiveness through the TOE–UTAUT framework. It recommends policy measures to improve digital infrastructure and data governance, practical initiatives to strengthen AI literacy and ethical awareness, and theoretical extensions to contextualise socio-cultural dimensions of AI use. Collectively, these insights contribute to advancing inclusive, trust-based digital transformation in Cape Town’s small business ecosystem.