Behavioral and Policy Dynamics of Energy Efficiency

Through AI-Driven Technology Adoption In SMES:

Going Green, Getting Smart, Both or Neither?

Small and medium-sized enterprises (SMEs) do not receive sufficient attention regarding their energy consumption and the need for technology adoption to improve energy efficiency. However, the majority of SMEs operate in commercial buildings, which contribute to global energy consumption at levels comparable to those of residential buildings. Since buildings are among the world’s second-largest energy consumers, the collective energy use and economic influence of SMEs are substantial and significant.

Technology adoption is one of the most important pathways for improving energy efficiency. However, adopting technologies is generally costly for SMEs, which represent one of the main limitations these organizations encounter. Recent studies have shown that artificial intelligence (AI) technologies can be highly effective in reducing energy consumption. Therefore, policies and institutional support have become vital in enabling SMEs to adopt technologies that enhance energy efficiency. Based on these considerations, this study aims to explore energy efficiency through technology adoption in SMEs, focusing on their practices, socio-cultural dynamics, future intentions, needs, expectations, and policy gaps.

Through three empirical studies, this research identifies the key roles of biospheric values, energy-efficiency responsibility beliefs, and industrial norms in encouraging SMEs to engage in energy-efficient behaviors. While SMEs are generally open to innovation for energy efficiency, they tend to make strategic, pragmatic, and cautious decisions because of internal and external constraints. When they perceive clear benefits from AI technologies, they develop positive intentions to adopt them; however, positive intentions do not always translate into actual adoption decisions due to financial, organizational, and external barriers. SMEs are also not a homogeneous group in terms of energy efficiency and technology adoption. Some rely only on smart technologies, some only on green practices, some on both, and others on neither. What SMEs need in the policy landscape are economic incentives combined with stronger communication, outreach, and educational strategies.