--- title: "The Impact of Artificial Intelligence on the Performance of Small and Medium Enterprises in Kosovo · AI Fault Line" url: https://aifaultline.com/research/p/doi-10-2478-sues-2026-0017/ description: "AI Fault Line is a neutral, evidence-cited field guide to why experts looking at the same developments disagree about AI's effect on productivity, jobs, inequality, regulation and the pace of change." --- [Research](https://aifaultline.com/research/) # The Impact of Artificial Intelligence on the Performance of Small and Medium Enterprises in Kosovo Blerim Dragusha, Saso Josimovski · Studia Universitatis „Vasile Goldis” Arad – Economics Series · 25 Oct 2026 [Read original source](https://doi.org/10.2478/sues-2026-0017) Open access Where this sits in the debate - [Will AI actually boost productivity and growth?](https://aifaultline.com/debate/productivity/) · its finding: it depends ([why studies differ](https://aifaultline.com/debate/productivity/#why)) Direction of the finding as read from the abstract by an AI model ([AI-written](https://aifaultline.com/about/)). ## Key takeaway [AI-written](https://aifaultline.com/about/) A survey of 210 small and medium enterprises in Kosovo finds AI adoption is positively associated with internal performance, especially HR management efficiency, and more modestly with decision quality. AI use is negatively associated with customer experience, and AI training is the strongest predictor of better outcomes. ## Abstract Abstract This study investigates the impact of Artificial Intelligence (AI) adoption on the performance of small and medium-sized enterprises (SMEs) in Kosovo, a context where firms face resource constraints but play a pivotal role in economic resilience. Using survey data from 210 SMEs and applying correlation and multiple regression analyses, the research explores how AI integration affects internal management processes, strategic adaptability, and overall organizational outcomes. The objectives were to assess the extent to which AI influences human resource management (HRM), decision-making quality, and customer experience, and to identify enabling factors such as digital readiness and employee training. The findings reveal a strong positive relationship between AI adoption and internal performance indicators, particularly HRM efficiency, where AI training emerged as the strongest predictor of improved outcomes. Decision-making quality was also positively associated with AI, albeit more modestly. However, results indicate a negative relationship between AI usage and customer experience, suggesting that current deployments prioritize internal efficiency at the expense of personalized service delivery. The study concludes that while AI can act as a catalyst for productivity and innovation, its benefits in customer-facing functions remain underutilized. These insights highlight the importance of aligning technological investment with workforce upskilling and customer-centric strategies. The paper contributes to the broader discourse on digital transformation in developing economies by offering recommendations for SME leaders and policymakers to foster inclusive and sustainable AI-driven growth. ## About this publication **Academic journal.** Published in an academic journal — typically peer-reviewed before publication, though indexing alone doesn't guarantee review depth. Published 2026 (recently) Citations 0 (OpenAlex) 0 citations recorded by OpenAlex — too few 2026 papers in this collection for a fair comparison. [Chart: published 2026] ## More on this topic Related by theme, not necessarily by method or conclusion. - [Navigating the Jagged Technological Frontier: Field Experimental Evidence of the Effects of AI on Knowledge Worker Productivity and Quality](https://aifaultline.com/research/p/doi-10-2139-ssrn-4573321/) SSRN · 2023 - [Generative AI at Work](https://aifaultline.com/research/p/doi-10-1093-qje-qjae044/) The Quarterly Journal of Economics · 2025 - [The Impact of AI on Developer Productivity: Evidence from GitHub Copilot](https://aifaultline.com/research/p/doi-10-48550-arxiv-2302-06590/) arXiv · 2023 - [The Productivity J-Curve: How Intangibles Complement General Purpose Technologies](https://aifaultline.com/research/p/doi-10-1257-mac-20180386/) American Economic Journal Macroeconomics · 2020 Overview assembled automatically from collected metadata. [How this site is built](https://aifaultline.com/about/).