Abstract
Small and medium scale enterprises (SMEs) are substantial in the development of a country, contributing to economic growth, job creation, innovation and social stability. They make a significant contribution to the national gross domestic product (GDP) by stimulating competition, which leads to higher quality products and services, lower prices and more efficient allocation of resources. For efficient and effective operation, they need Artificial Intelligence (AI) solutions which they are hesitant to embrace. This paper aimed at investigating the effect of AI on the survival of small and medium scale service firms in Imo state with reference to hospitality firms. The study adopted a survey design method. The sources of data were from primary and secondary sources. The population of the study was 820 chief executive officers and managers of hotels, restaurants, bars, lodges, and tourist centers, where a sample size of 268 was drawn. The data was analyzed using Regression analysis (SPSS v.20). It is found out that AI technologies have positive impact on customers’ service delivery and decision making. It is concluded that AI technologies are relevant in Small and Medium Scale Enterprises (SMEs) especially in the hospitality industry since they help to boost service delivery and enhance effective decisions. It is recommended that AI technology should be applied during decision making process for better and improved accuracy and reduction of errors; and also for efficient and effective customer service delivery.