The fast advancement in Artificial Intelligence (AI) world provides highly transformative opportunities for companies, however, Small and Medium-sized Enterprises (SMEs) experience considerable adoption obstacles, This is the reason why, this study focuses on how SMEs strategically prepare for AI integration using the resource orchestration view and organizational culture. Based on the Resource Orchestration Framework (Sirmon et al., 2011) and the Affordances Preparation Stage (Strauss et. al., 2024), this study employs qualitative case study from a European software-as-a-service (SaaS) SME to examine the correlation between technological, human, and organizational resources, surrounding AI adoption.

Driven by semi-structured interviews with five key stakeholders (e.g., Engineering Manager, Product Owner), coding analysis through NVivo revealed important insights that  can be classified as follows: Structured and proactive resource management facilitated AI adoption by maximizing existing internal knowledge and integrating third-party tools (e.g., Azure AI). Iterative development through lean approaches, prototyping, and six-week release cycles helped with the team’s adaptability. A customer-focused, experimental culture minimised resistance to change and balancing innovation with feasibility ensured AI initiatives coincided with business goals.

This research further reveals unaddressed challenges like unrealistic customer expectations set by the ubiquity of AI tools (e.g., ChatGPT) and, finally, emphasizes the preparatory stage in AI, where SMEs should align their teams, invest in upskilling employees, and develop AI preparedness. This study not only contributes insights around AI transformation theory but also offers a practical roadmap to help SMEs deal with the complexities of adopting AI solutions.