Why do SMEs adopt Artificial Intelligence (AI)-based chatbots?

Developments in artificial intelligence (AI) have led to the emergence of new technologies offering unique business opportunities. This study examines the factors influencing AI-based chatbot implementation by small and medium enterprises (SMEs). We grounded the study's conceptual model in the technology–organisation–environment (TOE) framework. Employing a quantitative research methodology, we collected data from 292 SME respondents via an online survey. We then utilised covariance-based structural equation modelling (CB-SEM) to analyse the data. The empirical results reveal that perceived employee capability, perceived availability of financial support, perceived top management support, perceived cost, perceived complexity and perceived relative advantage are positively associated with SMEs' AI-based chatbot adoption intention. This study thus contributes to the scarce literature on the adoption of AI-based chatbots for SMEs in developing small island countries. The findings provide meaningful insights to developers, marketers and SMEs to enhance firms’ performance and competitiveness by increasing the adoption of AI-based chatbots.