The Impact of Artificial Intelligence on the Revenue Growth of Small Businesses in Developing Countries: An Empirical Study

Abstract

Artificial intelligence (AI) has become an increasingly important tool for businesses of all sizes in today's rapidly evolving business landscape. The objective of this study was to empirically test the impacts of AI applications on the revenue growth of small businesses in developing countries. The study collected data from 391 small businesses and used multiple regression analysis to test the relationship between AI applications and revenue growth. The independent variables in the study were AI-based Customer Service, Marketing and Advertising, Sales Forecasting, Inventory Management, Employee Management, Cybersecurity, Financial Planning and Management, and Lead Generation. The analysis results revealed that all of the independent variables were statistically significant, except for AI-based Employee Management and Cybersecurity. The findings of the study emphasized the importance of using AI in small businesses and suggested that AI applications can have a positive impact on revenue growth. The results showed that AI applications in Customer Service, Marketing and Advertising, Sales Forecasting, Inventory Management, Financial Planning and Management, and Lead Generation had a statistically significant impact on revenue growth. This study contributes to the existing literature by providing empirical evidence of the benefits of AI for small businesses in developing countries. The results of this study can inform the strategies of small businesses and policymakers in developing countries and help them to better understand the role of AI in supporting the growth of small businesses. The study highlights the need for small businesses to invest in AI technology in order to remain competitive and improve their financial performance. The results of this study stress the importance of using AI in small businesses and suggest that AI applications can have a positive impact on revenue growth. The findings emphasize the need for small businesses to invest in AI technology in order to remain competitive and improve their financial performance. The results of this study can inform the strategies of small businesses and policymakers in developing countries and help them to understand better the role of AI in supporting the growth of small businesses.