he study examined the application of artificial intelligence (AI) in small and medium-sized enterprises (SMEs) in Southwest Nigeria. Specifically, the study assessed the level of awareness and understanding of Artificial Intelligence (AI) among the SMEs operators including the factors hindering the adoption and implementation of AI technologies in SMEs operations in the study area. Primary data was used for the study with the aid of a questionnaire on 355 respondents. The data gathered was analyzed using percentage, mean and standard deviation, while hypothesis was tested using t-test inferential statistics. The findings revealed that 75% of respondents are aware of AI technologies, but only 55-63% deeply understands industry-specific applications. Also revealed are the major barriers to the adoption, which include financial constraints, inadequate technological infrastructure, insufficient technical manpower skills, cultural and organizational resistance, regulatory challenges, data privacy and security concerns. The study recommended among others that targeted educational initiatives, financial support, and improved infrastructure to bridge the knowledge gap and enhance AI integration are key. Also that organizational culture, leadership openness, and employee readiness are crucial for successful AI adoption. Therefore the creation and implementation of comprehensive educational programs, financial incentives and policies to create a supportive environment for AI technologies should highly encouraged by all stakeholders
