From tools to strategy: How Ghanaian MSMEs can harness AI for scale

This article explores how Ghanaian micro, small, and medium enterprises (MSMEs) can leverage artificial intelligence (AI) to enhance their operations and gain a competitive edge. The global perception of AI often revolves around its being a technology reserved for large corporations with substantial resources, which, for Ghanaian MSMEs, is misleading and potentially damaging.

AI's true transformative potential lies in its ability to level the playing field for businesses that have traditionally been hindered by cost and complexity barriers.

Recognizing this potential, the Master Class organized by the WERIse Network attracted enthusiastic participation from Ghanaian women entrepreneurs. These entrepreneurs are eager to adopt AI solutions, as they align with their day-to-day challenges, including limited time, staff, finances, and the need to compete in fast-paced markets.

Ghana's MSMEs, which make up over 90% of businesses and account for more than 70% of employment, face a persistent structural constraint: the limited attention of owner-managers amidst expanding market demands. AI, viewed through the Resource-Based View, can bridge this gap by providing capabilities like customer responsiveness, data-driven insights, and financial discipline at variable costs rather than fixed ones.

Despite these promising opportunities, the adoption of AI among Ghanaian MSMEs is low, with less than 5% of surveyed SMEs using AI. The primary barriers are low digital skills, attachment to traditional practices, and inadequate infrastructure. However, recent developments, such as the emergence of large language models that enable quick adoption at relatively low cost, Ghana's National AI Strategy, and locally developed solutions, are creating an enabling environment for AI adoption.

Encouraging evidence from the academic literature supports the positive impact of AI on Ghanaian SMEs. A study of 249 SME users of AI-based accounting systems revealed that tool quality, service quality, usage, and user satisfaction significantly influence firm performance. Successful AI adoption follows a phased approach, starting with off-the-shelf tools for customer engagement, moving to partnerships for specialized needs, and eventually considering in-house capabilities.

Key AI tools for Ghanaian MSMEs include conversational AI for customer engagement through chatbots integrated with WhatsApp Business, natural-language business intelligence platforms that use localized languages, and AI-enhanced record-keeping and financial management tools. Visual content generation tools also help MSMEs create high-quality marketing materials without significant production costs.

By adopting AI in these targeted ways, Ghanaian MSMEs can enhance their operational efficiency, drive financial performance, and compete more effectively in today's digital economy.