AI-enhanced low-code platforms are expected to significantly transform the competitiveness of small and medium enterprises (SMEs) within the next three to five years. Experts indicate that these tools will democratize access to advanced technology, enabling small businesses to quickly develop custom applications, automate routine processes, and implement data-driven decision-making without the need for specialized technical expertise or substantial capital investment.

According to Khaleej Times, Hyther Nizam, President for the Middle East and Africa at Zoho, emphasized in an interview with Khaleej Times that the strategic advantage in business will shift from merely affording expensive technology to creatively applying accessible tools to address business challenges and improve customer experiences. He noted that SMEs adopting these platforms would experience accelerated innovation cycles, reduced operational costs, and the agility to adapt to market changes, positioning them as agile market disruptors capable of seizing new opportunities faster than larger competitors.

As SMEs begin to adopt low-code platforms, they face operational challenges, with a focus on automating repetitive, manual workflows such as data entry, inventory management, and approval processes. Nizam pointed out that SMEs are particularly interested in data consolidation and reporting solutions that eliminate siloed information across departments, allowing for the creation of unified dashboards that offer real-time visibility into business performance without the need for specialized technical skills.

On the customer-facing side, SMEs are rapidly implementing customer management solutions that centralize communication histories and purchasing patterns. These efforts enable more personalized service and the development of self-service portals and mobile applications, which allow customers to place orders and check status updates independently. This not only reduces support costs but also enhances customer satisfaction through 24/7 access and consistent experiences.

The adoption of AI-driven low-code development shows significant variation between SMEs and large enterprises, largely due to differences in resources, priorities, and operational needs. Nizam explained that SMEs typically prioritize rapid, cost-effective solutions that allow non-technical users to build and deploy applications swiftly, helping them overcome skill shortages and accelerate digital transformation. Their main focus is on agility, minimizing development costs, and improving operational efficiency with limited dependence on IT teams.

In contrast, large enterprises utilize AI-driven low-code platforms to supplement their existing IT and AI teams, aiming to speed up development cycles while adhering to strict governance, security, and compliance standards. Large organizations emphasize managing complexity, ensuring enterprise-wide control, and enabling citizen developers within a robust framework, whereas SMEs prioritize simplicity and speed.

The sectors leading the adoption of AI-powered low-code solutions among SMEs include professional services and retail/e-commerce. Professional services firms are quickly implementing client management systems and automated reporting tools that leverage AI for insights and document processing. Meanwhile, manufacturing and logistics companies are adopting solutions for supply chain visibility, predictive maintenance, and quality control to optimize operations and cut costs amid challenges like labor shortages and supply chain volatility.

Retailers are also embracing these platforms to enhance personalized shopping experiences, optimize inventory systems, and create omnichannel customer engagement solutions without needing extensive development resources. Following closely, healthcare SMEs are adopting AI-powered low-code platforms to streamline patient scheduling, billing workflows, and regulatory compliance tracking while ensuring data security.

Beyond application development, AI also aids SMEs in optimizing ongoing business processes by automating repetitive tasks and improving decision-making. Nizam mentioned that AI-powered chatbots can manage customer service inquiries round the clock, reducing response times and allowing staff to focus on more complex issues. Predictive analytics further help businesses in forecasting demand, managing inventory, and personalizing marketing campaigns, which leads to greater efficiency, cost savings, and enhanced customer satisfaction.

In the Middle East, particularly in Arabic-speaking markets, the adoption of low-code platforms is accelerating due to ambitious national digital transformation initiatives and diversification strategies. Nizam stated that government-backed programs in the UAE, Saudi Arabia, and Qatar are actively promoting digital skills and technology adoption among local SMEs, with a special focus on solutions that support Arabic language capabilities and regional business practices.

The financial services and retail sectors are at the forefront of adoption in the region, with a strong emphasis on mobile-first applications that cater to high smartphone penetration rates. Nizam noted a notable trend towards platforms that seamlessly integrate with Islamic banking requirements and support Arabic-language customer interfaces. Although adoption initially lagged behind global averages, Middle Eastern businesses are now leveraging these technologies to address technical talent shortages and modernize legacy systems, with a keen interest in solutions that combine AI capabilities with low-code development to improve their competitive positioning in global markets.

Many SMEs harbor misconceptions about AI-powered low-code platforms, mistakenly believing they necessitate significant technical expertise to implement. In truth, these solutions are tailored for business users with domain knowledge rather than coding skills. Additionally, there is a misconception that these platforms are limited to building simple applications, whereas modern systems can create enterprise-grade solutions with complex workflows and security features comparable to custom development.

Nizam further pointed out that SMEs often assume that adopting these platforms means they must completely replace their existing systems. However, most are designed to integrate with and enhance current infrastructures. Crucially, many small business leaders believe that implementing AI-powered low-code solutions requires large upfront investments, not realizing that many platforms offer scalable pricing models that allow them to start small with focused applications that demonstrate quick returns on investment before expanding, making advanced technology accessible even with limited resources.