ARTIFICIAL INTELLIGENCE (AI) COMPETENCIES AND INNOVATIVE PERFORMANCE OF SMALL-SCALE ENTERPRISES: A STUDY OF SELECTED LOGISTICS FIRMS IN FCT-ABUJA, NIGERIA

Abstract

This study examines the influence of Artificial Intelligence (AI) competencies on the innovative performance of small scale enterprises (SSEs), with a specific focus on logistics firms in the Federal Capital Territory (FCT), Abuja, Nigeria. A descriptive research design was adopted, and data was collected from 100 employees across five selected logistics firms in FCT-Abuja using a structured questionnaire. The study employed simple regression analysis with the aid of SPSS version 27 to analyse the relationship between AI competencies and innovative performance. Reliability was assessed using Cronbach’s alpha, while validity was determined through content validity. The study revealed that AI infrastructure positively influenced open innovation (β = 0.539, p < 0.05), business spanning improved innovative processes (β = 0.587, p < 0.05), and proactive stance significantly enhanced innovative output (β = 0.696, p < 0.05). The study concluded that AI competencies is needed in driving innovation in SSEs logistics firm. The study recommends that logistics firms in FCT-Abuja should invest in AI infrastructure, align AI initiatives with strategic goals, and foster a proactive organisational culture to enhance innovative performance.