Small, Medium, and Micro Enterprises (SMMEs) are pivotal players in economies worldwide, especially in developing and emerging economies, where they contribute significantly to job creation, poverty alleviation, and innovation. Despite their limited capital and financial resources. Key findings indicate that AI has evolved from emerging technology to an essential component of business decision-making, enabling companies to navigate complex environments effectively. Studies show that even though while AI is driving efficiencies, unlocking innovation, and creating new opportunities across various industries in South Africa, from banking and retail to mining and the public sector, the country faces a critical challenge: a severe shortage of AI-related skills. This skills gap is not merely a buzzword; it is a systemic challenge that threatens South Africa’s competitiveness, risks widening inequality, and leaves millions of workers unprepared for the future. Industries undergoing rapid digital transformation are facing a significant global challenge: a widening gap between required and available workforce digital skills. This study will employ a literature review methodology, relying exclusively on peer-reviewed articles, industry reports, and policy documents. This study aims to identify key determinants of this gap and develop a comprehensive conceptual framework for mitigation.

Keywords

AI skills gap, Artificial Intelligence, Operational efficiency, SMMEs and Adoption barriers