Mathibe, Tshidi2025-04-082025-04-082025-05-052024-11*A2025http://hdl.handle.net/2263/101873Mini Dissertation (MBA)--University of Pretoria, 2024.Small and medium enterprises (SMEs) are crucial to any economy and South Africa is no exception. These SMEs drive productivity, innovation, and job creation. However, there remains a high rate of failure of SMEs, particularly amongst Black-owned SMEs which form the majority of SMEs in South Africa. The purpose of the study is to explore how Black-owned SMEs can leverage AI to enhance financial sustainability and productivity. A qualitative approach was undertaken for the study with primary data being gathered from 15 participants through semi-structured interviews. The interviews aimed to gain insights their financial literacy levels, their ability to access to finance, the adoption of AI in their operations and the extent to which BBBEE ESD objectives could be advanced through AI. The study found low financial literacy levels amongst the Black-owned SMEs, which impedes their financial reporting capabilities and potential to raise funds for growth prospects. Whilst AI provides potential benefits for SMEs, only a handful of participants have fully adopted AI, therefore there is limited number of Black-owned SMEs that derive benefits and competitive advantage through AI. The study recommends that financial literacy platforms be developed for SME owners. In addition, BBBEE ESD Codes should be strengthened to drive AI adoption by making funding accessible. Future studies should focus on AI adoption strategies among Black-owned SMEs and focus on the extent to which financial literacy enables SMEs to raise. The study was limited to small participant group, this presents an opportunity for a wider study to be undertaken.en© 2024 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.UCTDAI AdoptionAccess to FinanceFinancial LiteracySME FundingMini Dissertationu23984393