The impact of generative AI on decision-making processes in Saudi Arabian SMEs.

This study investigates the impact of Generative Artificial Intelligence (AI) on decision-making processes within small and medium-sized enterprises (SMEs) in Saudi Arabia. The research aims to understand how business leaders perceive and integrate generative AI tools such as ChatGPT and Gemini into their strategic and operational decision-making. Using a qualitative phenomenological approach, data were collected through in-depth interviews with SME managers from various sectors to capture their lived experiences in adopting AI technologies. The findings reveal that generative AI significantly improves decision efficiency, analytical accuracy, and creative problem-solving. Managers reported that AI tools enhanced data-driven decisions, reduced workload, and supported innovation. However, participants emphasized that human judgment and ethical oversight remain essential, as AI cannot fully replace contextual reasoning or cultural sensitivity. Challenges identified include limited digital literacy, implementation costs, and employee resistance to technological change. The study concludes that successful AI adoption In Saudi SMEs depends on leadership support, employee training, and trust-building. It highlights that generative AI serves as a supportive partner rather than a substitute for human intelligence. The research contributes to understanding how digital transformation aligns with Saudi Vision 2030, emphasizing that integrating AI responsibly can strengthen innovation, competitiveness, and sustainable business growth.