Abstract

Small and medium-sized enterprises (SMEs) are critical in driving innovation and economic growth in the digital economy. However, their growing reliance on digital technologies exposes them to significant cybersecurity threats, such as ransomware, phishing, and data breaches. Limited resources, technical expertise, and inadequate security infrastructure make SMEs particularly vulnerable. This paper explores the potential of AI-driven cybersecurity frameworks to address these challenges, emphasizing technologies like machine learning, anomaly detection, and automated threat response. It highlights the scalability, real-time threat detection, and cost-efficiency of AI solutions tailored to SMEs. The paper also underscores the importance of policy and regulatory frameworks, collaboration with technology providers, and ethical considerations, such as data privacy and algorithmic fairness, in ensuring the responsible deployment of AI in SME cybersecurity. Practical recommendations are provided to guide SMEs in implementing AI-driven solutions, fostering resilience, and securing their position in an increasingly interconnected digital economy.