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Purpose

This study offers a literature review on how artificial intelligence (AI) creates value in SMEs by distinguishing three roles along the value chain, enabler, enhancer and transformer and integrating the Dynamic Capabilities perspective with an analysis of managerial mechanisms and ethical/regulatory tensions.

Design/methodology/approach

A systematic literature review was applied to a dataset of 84 articles drawn from the Web of Science database with an extensive string of keywords related to AI and SMEs.

Findings

The findings provide a critical assessment of (1) theoretical underpinnings, (2) methodological aspects and (3) empirical evidence on AI and SMEs, by highlighting the different roles of AI (enabler, enhancer and transformer) within the different stages of the SMEs value chain, as well as the dark side (bias, opacities, lock-ins) associated with AI.

Originality/value

This study is the first to make systematic efforts to take stock of existing conceptualizations and empirical findings concerning the different roles that AI can play in supporting SME processes, as an enabler of digital infrastructures and data ecosystems, an enhancer of managerial decision-making and operational efficiency or a transformer of business models and value creation mechanisms. In doing so, it offers a coherent overview of the state of the art and helps to identify cumulative insights or gaps for future research.

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