A Preliminary multidimensional AI readiness assessment model for SME's

Artificial intelligence (AI) is transforming the world by integrating the digital and physical worlds. Modern businesses utilize AI systems to optimize their operations, make strategic decisions and to enhance quality etc. On the other hand, Small and Medium-sized Enterprises (SMEs) constitute a sizeable portion of the global economy and are the main drivers of economic development. The highly saturated market of SMEs demands them to adopt innovative digital technologies to stay competitive. However, there are various challenges including ethics, transparency, privacy, biases, financial limitations, infrastructural incapacity, and others associated with the adoption of AI. Most SMEs are unable to measure AI readiness since it is a multi-faceted procedure that requires developing a multidimensional construct with variable elements. Therefore, this work proposes a Technology-Organization-Environment-Human (TOEH) framework that comprehensively captures the possible dimensions of AI readiness and their related elements. The model carries out this evaluation at the micro level by assessing the attributes of all dimensional elements for each of the four dimensions. In the pr-assessment phase, severity index for each attribute of the dimensional elements is formulated through expert review that serves as a metric to assess AI readiness. In the assessment phase, firm's capabilities are identified through a comprehensive questionnaire and each of the dimensional elements is assigned a readiness state (informal, struggling, approaching and desirable state). Based upon the state of these dimensional elements and the pre-determined severity ratings, a readiness rating is assigned to the four dimensions. The proposed model is also capable of suggesting a comprehensive action plan based on the organizational inadequacies. It is iterative that requires SMEs to reassess their readiness until it achieve the desired or required readiness state.