Loading article...
Loading article...
Stream/Area:
-
Subject:
-
Paper ID:
IJSREM63180
Volume:
10 |
5 |
May 2026
Pages:
1-10
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Department of Business Administration
Manikya Lal Verma Shramjeevi College, Udaipur, Rajasthan
Small and medium-sized businesses can benefit greatly from generative AI, which can help them work more efficiently innovate and compete with bigger companies.However generative AI also brings risks, such as cyber attacks and data breaches which can be a challenge for small businesses with limited resources. This study looks at how AI affects small and medium-sized businesses through case studies, trends and threat modeling. We found that generative AI can increase productivity by up to 40% in areas like retail and manufacturing.On the hand 39.7% of AI interactions can lead to threats like deep fake attacks and sensitive data exposure. Reports on AI adoption and cybercrime in India show that small businesses face threats like model poisoning and job displacement. To solve these problems we suggest using a mix of human and AI governance, affordable cloud-based tools and training programs. Our findings support creating frameworks that emphasize AI use, ethical checks and partnerships, between public and private sectors. This can help small businesses take advantage of AI while minimizing risks.
KEYWORDS
This study on "AI Risks, Opportunities and Threats to Medium Enterprises in the Generative AI Era (2026)" shows that generative AI is very important for enterprises. It helps them in ways like making things more efficient innovating, automating tasks and reducing costs in areas like marketing, customer service and operations.. Medium enterprises also face some problems like keeping data safe high costs, ethical issues following rules like the EU AI Act and India’s DPDP and dealing with things like deepfakes and AI-enabled fraud. To use AI in a good way and stay safe medium enterprises should do a few things. Ø They should make a plan for using AI with good data protection, risk management and audit checks. Ø They should teach their workers about AI and how to use it in a way including how to make good prompts and use AI ethically. Ø They should start using AI with small projects that are not too risky and then move to bigger projects while still having humans in charge. Ø They should make their cybersecurity and brand protection stronger using tools that stop deepfakes and good ways to handle data. If medium enterprises use AI in a way and think about the risks they can get many benefits like being more productive and innovative while also protecting their business, money and reputation.
1. National Institute of Standards and Technology (2023). AI Risk Management Framework (AI RMF 1.0). Gaithersburg, MD: NIST.NIST AI RMF 2. Abdel MagidH. S.DesjardinsM. R.HuY. (2024). Opportunities and shortcomings of AI for spatial epidemiology and health disparities research on aging and the life course. Health Place89:103323. doi: 10.1016/j.healthplace.2024.103323 3. European Union (2024). EU Artificial Intelligence Act (EU AI Act). Brussels: European Commission. EU AI Act Official Portal 4. Jobin, A., et al. (2019). The global landscape of AI ethics guidelines. Nature Machine Intelligence, 1(9), 389-399. Meta-review of 84 ethics frameworks, highlighting persistent gaps in bias and transparency relevant to 2026 deployments. 5. Brynjolfsson, E., et al. (2023). Generative AI at Work. NBER Working Paper No. 31161. Quantifies productivity paradox in AI adoption, with implications for 2026 economic impacts. 6. EU AI Act (2025). Regulation (EU) 2024/1689. Official Journal of the European Union. Details Phase Two mandates for high-risk AI transparency by August 2026. 7. OWASP Foundation (2025). OWASP Top 10 for Large Language Model Applications. Identifies prompt injection, data poisoning, and supply chain vulnerabilities as top security risks. 8. McKinsey & Company (2026). The state of AI in 2026. Annual report on agentic systems, multimodal AI, and industrial robotics opportunities. 9. Nexford University (2026). How will Artificial Intelligence Affect Jobs 2026-2030. Projects 92 million global jobs displaced, emphasizing reskilling needs. 10. Kiteworks (2026). AI Regulation in 2026: The Complete Survival Guide for Businesses. Covers U.S. patchwork rules and EU compliance strategies.
Publication Date
5/14/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
Documents
Article Views
0
Total views since publication
PDF Downloads
3
Total downloads since publication
Geographic Reach
5
Digital Preservation: This article is permanently archived on Zenodo and complies with all data preservation standards across major indexing platforms.
Plagiarism Screening
This manuscript has been checked for plagiarism using TurnitinPlagiarismChecker software.
Conflict of Interest
The authors declare no conflict of interest related to this research work.
Funding Information
No funding information available for this research.
Related research in the same subject area
Loading similar articles...