# Generative Artificial Intelligence in Small and Medium Enterprises: Navigating its Promises and Challenges

arXiv: https://arxiv.org/abs/2602.00091 · HTML: https://mlsanity.com/paper/2602.00091/

## Key facts

- Cited by 1 papers in the map (data through 14 Oct 2026).
- Builds on 1 of its 77 references that are in the map.
- First posted on arXiv 23 Jan 2026.

## Builds on (most cited first, 1 of 1)

- [Large Language Models are Zero-Shot Reasoners](https://mlsanity.com/paper/2205.11916/) (2022)

## Built on by (most cited first, 1 of 1)

- [Intent Drift at SME Scale: Deployment Practice, Not Model Capability, Determines Agentic Compliance](https://mlsanity.com/paper/2609.05975/) (2026)

## Abstract (arXiv)

The latest technological developments in generative artificial intelligence (GAI) offer powerful capabilities to small and medium enterprises (SMEs), as they facilitate the democratization of both scalability and creativity. Even if they have little technical expertise or financial resources, SMEs can leverage this technology to streamline work processes and unleash innovation, thereby improving their product offerings and long-term competitiveness. This paper discusses how SMEs can navigate both the promises and challenges of GAI and offers a roadmap for deploying GAI. We introduce a sailing metaphor that reveals key strategic dimensions for GAI deployment: competency of employees, effective leadership and work values, organizational culture, collaboration and cooperation, and relationships with third parties. We offer practical recommendations that serve as a useful compass for successfully deploying GAI in SMEs.