How Omani SMEs can turn AI into a competitive Advantage

Artificial intelligence is no longer a technology reserved for large corporations or businesses with substantial financial resources. Today, even relatively small businesses can use AI tools to perform tasks that previously required considerable time, specialised expertise and additional staff. From responding to customer enquiries to analysing sales trends, managing inventory and preparing financial reports, AI is changing how businesses operate. For Oman, this presents an important opportunity, particularly for small and medium-sized enterprises (SMEs) that are seeking to improve productivity, reduce costs and become more competitive.

The real question, however, is not whether businesses should adopt AI, but how they can use it effectively to generate tangible economic benefits.

For many SMEs, one of the biggest advantages of AI is the ability to do more with limited resources. A small retail business, for example, can use AI-powered tools to analyse purchasing patterns, identify popular products and forecast future demand. This can help business owners make better inventory decisions, reduce unnecessary stock and minimise waste. Similarly, restaurants and hospitality businesses can use AI to understand customer preferences, manage bookings, improve marketing and respond to enquiries more efficiently.

Marketing is another area where smaller businesses can benefit considerably. Traditionally, developing advertising campaigns, preparing promotional material and analysing customer behaviour required either dedicated employees or external agencies. AI tools can now assist with producing marketing content, translating communications, identifying potential customer groups and tailoring promotional campaigns.

Financial management also offers considerable opportunities. Many small businesses struggle with cash-flow management, expense monitoring and financial planning.

For Oman, the potential extends beyond individual business efficiency. SMEs play an important role in economic diversification, employment generation and the development of local supply chains. If businesses become more productive through technology, they can potentially expand their operations, improve service quality, reach new customers and compete in regional markets. AI could therefore become an important contributor to strengthening the competitiveness of Oman's private sector.

However, adopting AI should not become an objective in itself. Buying software or subscribing to an AI platform does not automatically translate into higher productivity or profitability. Businesses first need to identify where they face operational difficulties and determine whether AI can offer a practical solution. A small enterprise, for instance, might begin by automating customer enquiries or improving inventory management rather than investing in expensive and complex systems. Starting with manageable applications, evaluating the results and gradually expanding their use is a more realistic approach for many SMEs.

There are also challenges that cannot be ignored. Data privacy, cybersecurity, the accuracy of AI-generated information and the risk of excessive dependence on automated systems require careful attention.

This is where government institutions, universities and the private sector can make a meaningful contribution. Practical training programmes, SME-focused digital advisory services, collaboration with technology providers and affordable access to AI solutions can help businesses overcome the initial barriers to adoption. Universities can also support SMEs by connecting research and technical expertise with real business challenges.

Oman's National Digital Economy Programme and its second phase for 2026–2030 provide an important policy framework for accelerating digital transformation and encouraging businesses to embrace emerging technologies. The next step should be ensuring that these ambitions translate into practical improvements at the level of individual enterprises.

Ultimately, the competitive advantage of AI will not belong only to businesses that adopt the most advanced technology. It will belong to those that understand how to use it intelligently, responsibly and productively. For Oman's SMEs, AI should not be viewed as an expensive technological trend or a distant possibility. It is an increasingly accessible business tool that, if used effectively, can help smaller enterprises become more efficient, innovative, and competitive. The opportunity now is to turn that potential into measurable economic value.