Opportunities for the Application of Artificial Intelligence in SME Financial Analysis

The aim of the paper is to analyze the possibilities for applying artificial intelligence (AI) in the financial analysis of small and medium-sized enterprises (SMEs), identifying the main benefits and challenges. The research problem is related to the fact that traditional financial analy-sis methods often fail to effectively process large and diverse volumes of data currently available to companies and do not ensure sufficiently fast and accurate forecasting in a dynamic business environment; moreover, SMEs in Latvia have so far made very limited use of AI capabilities. The article reviews scientific literature and applies a comparative approach to evaluate various AI solu-tions for financial data processing, forecasting, and risk assessment in the SME context. The authors’ contribution is a systematized overview of directions for using AI technologies in finan-cial analysis, as well as the identification of practical prerequisites for successful AI implementa-tion in SMEs. The research results and the authors’ proposals show that AI can significantly improve the accuracy, efficiency, and timeliness of financial analysis, while emphasizing the need for high-quality data, employee competencies, and appropriate digital infrastructure.