Successful Adoption of GenAI in SMEs from a Knowledge Management Perspective

Abstract

Generative artificial intelligence (GenAI) has the potential to transform industries and organizations by changing how knowledge is created, stored and retrieved, transferred, and applied, thus moving to a new and complex era of organizational knowledge management. There is an inherent connection between artificial intelligence (AI) and knowledge management, both of which are related to the nature of knowledge and learning. GenAI impacts knowledge management in organizations, for example by supporting knowledge creation through improving individuals’ learning and facilitating knowledge application through conversational interaction. The adoption of GenAI may bring competitive advantage to small and medium-sized enterprises (SMEs) by improving productivity and profitability and making it easier to achieve their goals. The use of GenAI is growing among SMEs, but still only a third of SMEs are using GenAI.

This thesis examines the successful GenAI adoption in SMEs from a knowledge management perspective. Furthermore, it examines the signs of successful adoption as well as the factors that affect it. The objective of this thesis is to examine, from a knowledge management perspective, what successful GenAI adoption in SMEs requires and how companies can achieve it.

This study was conducted using design science research (DSR) with the objective of developing an artifact to support the successful adoption of GenAI in SMEs from a knowledge management perspective. A literature review was conducted to identify relevant concerns and factors influencing adoption. Based on the literature review, the first version of the artifact was developed. The artifact was then developed, demonstrated, and evaluated in three iteration rounds with the companies participating in the study, each round developing the artifact based on the results of the previous demonstration and evaluation.

The results show that the successful adoption of GenAI can be defined by whether the GenAI solution is actually used and how it is experienced by its users, but the definition also depends on the organization and its capabilities and goals. The successful adoption is influenced by multiple interrelated critical factors that need to be carefully considered in relation to the organization's operations. For successful adoption, it is essential to recognize the three phases of implementation, pre-implementation, implementation, and post-implementation, as well as the categories of people, organization, organizational acceptance, and technology, and their associated critical factors. None of them alone guarantees successful adoption; rather, it requires a holistic consideration of all categories across all phases.

As a result of the study, a canvas tool was developed to support SMEs in the adoption of GenAI. It is designed for top management use and is intended to be utilized when considering the adoption of GenAI. The canvas provides SMEs with a tool for assessing and structuring the adoption of GenAI from a knowledge management perspective. The canvas enables organizations to identify and evaluate critical factors across different phases and categories of implementation.

The thesis contributes to research on the adoption of GenAI from a knowledge management perspective by structuring the critical factors and implementation phases that SMEs should consider, an area where prior research remains limited. The empirical findings deepen the understanding of successful adoption by revealing factors that have not been previously discussed in the literature.