ARTIFICIAL INTELLIGENCE ADOPTION AND FINANCIAL DECISION-MAKING AMONG SMALL AND MEDIUM ENTERPRISES IN WEST AFRICA

Abstract

This study was necessitated by the growing need for artificial intelligence (AI) as a tool that enhances financial decision-making and the observed low level of AI adoption among Small and Medium Enterprises in West Africa despite the various benefits it proffers. The study explored how AI adoption is reshaping financial decision-making among businesses in West Africa and identified the opportunities and challenges influencing its adoption. The study utilized a qualitative research approach, and secondary qualitative data was obtained from peer-reviewed literature published between 2020 and 2026 and analyzed the data using thematic analysis to synthesize existing empirical evidence. The findings showed that AI is transforming financial decision-making by enhancing financial intelligence, predictive analytics, financial forecasting, investment analysis, risk management, operational efficiency, and corporate governance. Key opportunities such as, improved organizational performance, enhanced strategic competitiveness, digital transformation, and greater transparency in financial management, were identified. Inadequate digital infrastructure, limited financial resources, shortages of AI-related skills, weak organizational readiness, governance and ethical concerns, and insufficient institutional and policy support, were highlighted as major challenges. The study concluded that although AI offers considerable potential to transform financial decision-making and improve business performance in West Africa, realizing these benefits requires strengthening organizational capabilities, improving digital infrastructure, promoting responsible AI governance, and establishing supportive policy frameworks. The study therefore recommended, among others, increased investment in digital infrastructure and workforce capacity development by businesses.