Determinants of Artificial Intelligence Adoption among SMEs: Evidence from Indonesia

This study investigates the key factors influencing AI adoption among Indonesian SMEs by examining both internal organizational conditions and external environmental pressures. The research established models from prior studies conducted in Malaysia, India, and Thailand which focuses on competitive pressure, top management commitment, employee adaptability, external support, and organizational readiness. Data were collected through a 411 survey data of SME owners and managers in Bekasi and Jakarta TImur, Indonesia, and analyzed using SmartPLS 4.0 to analyze the data. The findings indicate that organizational readiness represents the most influential factor on AI adoption followed by employee adaptability and external support, while competitive pressure and top management commitment were found to have no significant effect. This study extends existing AI adoption literature by providing empirical evidence from Indonesian SME context and offers industry professionals and policymakers seeking ad learn on how to accelerate AI adoption within SMEs.