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Artificial intelligence has become one of the most powerful tools for helping small and medium-sized enterprises (SMEs) compete with larger corporations, according to entrepreneurs and technology experts speaking at the inaugural SME Summit organized by Business Bel Arabi.

During a panel discussion titled “Competing with Giants: How SMEs Can Win Using Artificial Intelligence,” speakers highlighted how AI is transforming business operations beyond simple cost reduction and task automation. They argued that AI is enabling companies to redesign business models, improve operational efficiency, and respond to market changes faster than many larger organizations.

Participants agreed that successful AI adoption is not determined by company size, but rather by the clarity of business objectives, organizational readiness, and the ability to manage data effectively and securely. They also noted that SMEs possess a significant advantage in their flexibility and speed of decision-making, allowing them to implement innovative solutions more rapidly than larger enterprises burdened by complex organizational structures.

Data Readiness Is the Foundation

Salah Moanes emphasized that an organization's ability to leverage AI depends primarily on the quality, accessibility, and governance of its data.

He explained that businesses need a unified data source and a structured framework for accessing information in line with operational standards before deploying AI solutions successfully. According to Moanes, SMEs can outperform larger companies when they achieve similar levels of data maturity because they can make decisions and test new business models much faster.

Agility Gives SMEs a Competitive Edge

Mohamed El Masry highlighted that SMEs are uniquely positioned to benefit from AI because they are not constrained by the legacy systems and bureaucratic processes often found in large corporations.

He stressed that AI's value depends on having clear business objectives. Companies that understand precisely what they want to achieve can use AI to accelerate growth and efficiency, while organizations lacking strategic direction may simply move faster in the wrong direction.

El Masry added that AI tools have already enabled businesses to accomplish tasks previously requiring large teams with significantly fewer employees and lower costs.

The Real Value Lies in Application, Not Ownership

Ahmed Abaza argued that AI itself should not be viewed as a standalone competitive advantage. With generative AI becoming increasingly accessible, he believes the real differentiator is how organizations integrate AI into daily operations and business processes.

He noted that building proprietary AI models is only necessary in limited cases involving highly specialized data or unique requirements. Instead, businesses should focus on using AI to improve operations, increase margins, enhance customer experiences, and accelerate decision-making.

According to Abaza, future competitive advantages will come from an organization's ability to learn faster and convert customer interactions and operational data into smarter business decisions.

Investors Prioritize Business Models

Mostafa Medhat stressed that AI should be treated as a tool for improving efficiency rather than a business strategy in itself.

From an investment perspective, he explained that investors are primarily interested in business models, scalability, and growth potential rather than the technologies being used. Technology becomes valuable when it helps solve real market problems, supports expansion, and creates advantages that competitors cannot easily replicate.

Medhat added that investors pay close attention to how difficult a company's products, services, or technologies are to replace, as uniqueness and defensibility remain key drivers of long-term value.

Future Success Depends on Effective AI Integration

The panel concluded that AI offers SMEs a genuine opportunity to compete with larger corporations, but success depends on strong data governance, operational flexibility, scalable business models, and the ability to align technology with market needs.

Speakers agreed that the next phase of competition will not be about who owns AI tools, but about who can integrate them most effectively into business operations to achieve higher productivity, lower costs, faster services, and sustained innovation.