IMPACT OF AI CREDIT SOLUTIONS ON SMES: OPPORTUNITIES, CHALLENGES, AND IMPLICATIONS FOR PAKISTAN AND THE U.S. ECONOMY

Abstract

Small and Medium Enterprises (SMEs) are essential drivers of economic growth, stability, and financial inclusion in both emerging and developed markets. The adoption of AI-driven credit solutions offers significant potential to transform SME financing by improving credit access, enhancing risk assessment accuracy, and enabling sustainable business growth. This study examines the impact of AI credit solutions on SMEs in Pakistan, identifying key opportunities such as operational efficiency, improved lending decisions, financial inclusion, and strategic growth potential, alongside challenges including regulatory compliance, technological infrastructure gaps, data availability, and organizational readiness. Additionally, the research explores implications for the U.S. economy, highlighting how insights from Pakistan’s experience can inform policy, financial innovation, and inclusive growth strategies in developed markets. By combining national insights with international perspectives, this study provides actionable recommendations for policymakers, financial institutions, and SME stakeholders, demonstrating how AI-enabled credit solutions can accelerate SME growth, strengthen economic stability, and contribute to sustainable development at both national and global levels.