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Leveraging AI-Powered Predictive Analytics for Proactive Risk Management and Business Resilience in SMEs: Harnessing Predictive Insights to Strengthen Decision-Making in SMEs
Abstract
The AI predictive analytics-based tool has broken the silence by prompting them to adopt proactive ex-ante risk management strategies as opposed to the previous schemes. predictive analytics permits the SME to anticipate imminent disturbances, form the trend, and detect anomalies in real-time through its application of machine learning algorithms and advanced data analytics techniques. Such methods can consequently be expected to cease or avert impacts created by the following: anticipated supply chain disruptions, possible financial vulnerabilities, and operational inefficiencies. Indeed, challenges abound in adopting AI solutions. Notwithstanding these challenges, SMEs have proved vibrant in adopting AI tools to enhance their risk mitigation frameworks and resilience against crisis events such as recession or global pandemics, as borne out by case studies. This review paper critically examines the different theoretical aspects and future prospects of AI-powered predictive analytics in the context of SME adoption.
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