The Factors Influencing the Adoption of AI in E-Commerce by SMEs in Shandong Province

Loo Yew Liang and Liu Hongtao
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Loo Yew Liang: Institute of International Education, New Era University College, Malaysia
Liu Hongtao: Institute of International Education, New Era University College, Malaysia

International Journal of Research and Innovation in Applied Science, 2025, vol. 10, issue 6, 1268-1288

Abstract: This study delves into the factors influencing the adoption of Artificial Intelligence (AI) in e-commerce by small and medium-sized enterprises (SMEs) in Shandong Province, China. Leveraging a quantitative approach with a 300-questionnaire survey among 305 SMEs, it uncovers that technological, organizational, and environmental factors play crucial roles. Technological factors, such as perceived ease of use and usefulness, exert the strongest influence on SMEs’ attitude towards AI adoption. Adequate financial resources, skilled personnel, and top management support within organizations enhance the likelihood of AI adoption. External pressures like competition and customer demand also drive SMEs to consider AI. However, SMEs face challenges, including high costs and skills shortages, despite a generally positive attitude towards AI. The research findings offer practical implications for SMEs, policymakers, and industry stakeholders. SMEs can integrate user-friendly AI solutions, explore cost-effective options like AI-as-a-Service (AIaaS), and seek government financial incentives. Policymakers can enhance financial incentives, collaborate with educational institutions to address skills shortages, and streamline data regulations. Industry stakeholders, such as technology providers and industry associations, can develop more suitable AI solutions and promote best practices and industry standards. Future research should focus on long-term impact studies, the influence of emerging technologies like generative AI, improvement of data collection methodologies, and in-depth exploration of factor interactions to further understand and promote AI adoption in Shandong’s e- commerce SMEs.

Date: 2025
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