Abstract
Despite growing interest in the potential of artificial intelligence (AI) to drive innovation performance, research has yet to establish how AI adoption influences research and development (R&D) investment in small and medium-sized enterprises (SMEs). Drawing on a sample of 460 UK-based SMEs, this study examines the direct effect of AI implementation on R&D investment and assesses family ownership as a boundary condition in this relationship. Results indicate that AI adoption is positively associated with R&D investment. Moreover, family ownership weakens this positive relationship. These findings contribute to the literature on technology-enabled innovation by clarifying the AI–R&D nexus in SMEs and by identifying family ownership as a pivotal contingency. Implications for theory and practice are discussed, including how managers and policymakers can better align AI strategies with R&D investment objectives in diverse ownership contexts.