Artificial Intelligence (AI) is revolutionising company operations by providing new avenues for enhancing productivity, judgement, and customer service. However, due to a lack of funding, inexperience, and technical difficulties, small and medium-sized businesses (SMEs) frequently find it difficult to implement AI. This thesis examines the effective application of AI in businesses, particularly SMEs, and offers a workable strategy to assist them in incorporating AI into their daily operations.

The study creates a straightforward and organised methodology for evaluating a company's readiness for AI adoption. It examines important elements including staff competencies, technology, corporate strategy, financial capability, and regulatory requirements. The paper highlights typical problems SMEs encounter and provides solutions to make AI adoption easier and more successful using case studies and realworld examples.

The report demonstrates that AI enhances decision processes while automating essential operations and operational optimization for SMEs to increase their market positions. Small to medium-sized enterprises encounter difficulties with expensive implementation and insufficient knowledge of technical matters and opposition to change. This research develops an AI readiness measurement framework for SMEs which helps them evaluate their capacity to execute AI implementations through standardized methods. The thesis demonstrates to SMEs how they can successfully implement AI sustainably by emphasizing essential elements for success and describing usual barriers together with practical guidance.