Responsible AI Literacy’s Role in Ethical, Transparent, and Sustainable AI Adoption in SMEs: Mediating Effects of Technology, Organization and Environment

DOI

10.2991/978-94-6463-827-1_14How to use a DOI?

Keywords

Responsible; AI Literacy; Technology; Organization; Environment

Abstract

The adoption of Artificial Intelligence (AI) in Small and Medium-sized Enterprises (SMEs) presents both opportunities and challenges, particularly in ensuring ethical, transparent, and sustainable AI implementation. Despite the growing significance of AI, many SMEs struggle with adoption due to limited digital literacy, inadequate technological infrastructure, and the absence of clear governance frameworks. This study aims to propose a conceptual framework by examining the role of Responsible Artificial Intelligence Literacy (RAIL) in driving AI adoption in SMEs, with technological capabilities, organization, and external environment as a mediating factor within the Technology-Organization-Environment (TOE) framework. A conceptual approach was employed, synthesizing existing literature to develop a theoretical model that explores the relationship between RAIL, technological readiness, and AI adoption. The findings suggest that SMEs with higher levels of RAIL are more likely to integrate AI responsibly, provided they have adequate technological infrastructure and digital capabilities. Moreover, technological readiness significantly mediates this relationship, indicating that even with strong AI literacy; SMEs require robust IT systems and supportive environments to effectively adopt AI solutions. The study contributes theoretically by extending the TOE framework to include RAIL as a critical determinant of AI adoption, while practical implications highlight the need for SMEs to invest in AI training, enhance digital infrastructure, and develop ethical AI policies. Policymakers and business leaders should focus on creating AI governance frameworks and support mechanisms to facilitate responsible AI integration in SMEs. Future research should explore empirical validation of the proposed model and examine industry-specific challenges to deepen understanding of responsible AI adoption in SMEs.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Abd Latif Abdul Rahman
AU  - Wan Irham Ishak
AU  - Muhammad Azhan Abdul Aziz
AU  - Zuraidah Arif
AU  - Shafinah Md Salleh
AU  - Moh Safii
PY  - 2025
DA  - 2025/08/22
TI  - Responsible AI Literacy’s Role in Ethical, Transparent, and Sustainable AI Adoption in SMEs: Mediating Effects of Technology, Organization and Environment
BT  - Proceedings of the 3rd International Conference on Business, Finance, Management and Economic (BizFAME 2024)
PB  - Atlantis Press
SP  - 196
EP  - 220
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-827-1_14
DO  - 10.2991/978-94-6463-827-1_14
ID  - Rahman2025
ER  -