Determinants and Strategic Pathways of AI Integration in SME Marketing Practices

Abstract

This article investigates how small and medium enterprises (SMEs) integrate artificial intelligence (AI) into their marketing practices and what determinants shape different strategic pathways of integration. It asks to what extent technological, organizational, and environmental factors enable SMEs to move beyond tool level adoption toward more capability based and strategic use of AI in marketing. Using a systematic literature review of peer reviewed studies published between 2018 and 2023, the study synthesizes evidence on AI applications such as AI enhanced CRM, chatbots, recommendation engines, and customer analytics. Descriptive mapping is used to summarize contexts, methods, and types of AI use, while thematic analysis identifies recurring determinants and clusters of integration patterns. The review finds that perceived benefits, digital infrastructure, leadership support, skills, and ecosystem pressures jointly shape whether AI remains experimental or becomes embedded in SME marketing routines. It also highlights important methodological and contextual gaps and outlines future research directions on longitudinal dynamics, performance outcomes, and governance issues in AI enabled SME marketing.