Drivers and barriers of AI tool adoption in Jordanian SMEs: a qualitative TOE-based study

Artificial intelligence tools are increasingly used in business. However, small and medium-sized enterprises (SMEs) continue to face challenges in deciding whether to adopt them and how to. This study examines the factors that encourage or hinder the adoption of AI tools by SMEs in the Jordanian context. The study uses the technology-organisation-environment framework (TOE) and draws on 15 semi-structured interviews with AI solution providers, AI adopters, and firms considering adoption. The data was analysed thematically using TOE-guided deductive coding alongside inductive coding. The findings show that technological and organisational factors, including relative advantage, compatibility, managerial support, financial resources, and prior experience, influence AI adoption decisions. Environmental factors, such as competitive pressure, regulation, industry conditions, and public awareness, also affect adoption, but their role differs across firm categories. AI solution providers mainly emphasised expertise, market scope, and client readiness. Adopters focused more on organisational readiness and competitive pressure, while firms considering adoption reported uncertainty, cost, and employee acceptance as prominent barriers. Resistance to change and public awareness also appeared as context-sensitive factors within the organisational and environmental dimensions of TOE. The study provides qualitative evidence from Jordanian SMEs and offers practical implications for SMEs, AI solution providers, and support bodies in Jordan and similar regional contexts. The findings should be read as exploratory and context-specific, not as broad evidence for all SMEs in developing countries.