International University of Travnik , Travnik , Bosnia and Herzegovina
International University of Travnik , Travnik , Bosnia and Herzegovina
Generative artificial intelligence (GenAI) has spread into everyday business practice faster than any digital technology before it. For small and medium-sized enterprises (SMEs), which make up around 99% of all firms in the European Union, this development matters more than most: capabilities that once required specialist staff or expensive software are now available through low-cost subscriptions. This paper reviews academic literature and industry reports published between 2017 and 2026 to examine how GenAI affects core SME business processes marketing and sales, customer support, operations and administration, finance, and product development. The evidence so far points to the largest gains in content- and communication-heavy work; one field study, for instance, found that support agents using a GenAI assistant resolved about 15% more issues per hour. Adoption, however, is held back by skill shortages, concerns over output accuracy and data protection, and new obligations under the EU Artificial Intelligence Act. We conclude that GenAI substantially lowers the technological entry barrier for SMEs, but that capturing its value requires process redesign, employee training, and a risk-aware implementation strategy rather than tool purchases alone.
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