Raphael John-Lall
For many entrepreneurs in T&T, sustainability can feel like a luxury reserved for large corporations with deep pockets. Small and medium-sized enterprises (SMEs) often operate with limited resources while facing growing expectations to adopt environmentally and socially responsible practices.
However, new research from the University of the West Indies (UWI), led by UWI lecturer Dr Priscilla Bahaw, suggests that generative Artificial Intelligence (AI) may help small businesses achieve sustainability goals in ways that were previously unimaginable.
Generative AI is a subset of Artificial Intelligence that creates new, original content—including text, images, code, music and videos—by analyzing patterns in massive datasets.
The study, published in the international journal Sustainable Futures, provides the first empirical evidence in T&T linking the use of generative AI to business sustainability among SMEs. Conducted by Bahaw alongside co-authors David Forgenie, Ghulfam Sadiq and Satesh Sookhai, the research explores how AI-powered tools can help small businesses balance profitability with environmental and social responsibility.
Bahaw is a lecturer in entrepreneurship at UWI and serves as Caribbean chair of the Academy of Latin America Business and Sustainability Studies. Her research focusses on entrepreneurship, SME development, and sustainable business practices in small island developing states.
In an interview with the Business Guardian, she gave details of the study and its impact on the business sector.
Bahaw said the motivation for the research emerged from observing the realities faced by entrepreneurs across the Caribbean.
“SMEs are constantly being asked to do more with less, They must remain profitable while also responding to environmental and social expectations. Our research shows that generative AI can help bridge that gap.”
National AI conversation
The research arrives at a critical moment for T&T as the country explores its readiness to adopt AI technologies.
On February 27, 2026, policymakers, academics and international partners gathered at UWI’s St. Augustine campus for the National Artificial Intelligence Readiness Validation Workshop, hosted in collaboration with the Ministry of Public Administration and Artificial Intelligence and UNESCO. The workshop formed part of a broader national effort to assess how prepared the country is to adopt AI responsibly and strategically. The lead local expert for the initiative is Dr Letitia Addison, another UWI lecturer, who Bahaw works closely with.
According to a news release on the event from the Ministry of Public Administration and Artificial Intelligence, the workshop marked a critical milestone in T&T’s AI Readiness Assessment process.
Minister of Public Administration and Artificial Intelligence, Dominic Smith, in his address reaffirmed the Government’s commitment to building a responsible, inclusive and forward-looking digital society.
“We seek a future in which technology serves people, not the other way around. A future in which innovation flourishes without compromising rights, equity or public trust. A future in which small states like ours are active architects of technological progress,” he stated.
Bahaw’s research has contributed to this national conversation by highlighting the role that AI can play in strengthening the country’s SME sector.
“Much of the global AI conversation focuses on large corporations. But in economies like ours, small businesses are the engine of growth. If we want digital transformation to be inclusive, SMEs must be part of that journey,” she said.
Sustainability in small businesses
She pointed out that sustainability in business is often framed through the concept of the “triple bottom line,” which encourages companies to balance three priorities: profit, environmental responsibility and social impact.
While large corporations may have dedicated sustainability teams and large budgets, SMEs often face very different realities. Limited capital, smaller workforces, and intense competition can make sustainability initiatives difficult to implement.
Bahaw’s research set out to examine whether generative AI could help overcome these challenges.
“Technology has traditionally been viewed as something accessible mainly to large firms. What makes generative AI different is its accessibility. Many of these tools are relatively affordable and user-friendly, which means even small entrepreneurs can benefit.”
To better understand how these technologies are being used locally, the research team conducted a mixed-methods study involving 310 SME owners across T&T, complemented by in-depth interviews with entrepreneurs.
She noted that the quantitative results revealed that two factors strongly influence whether business owners adopt AI tools: perceived usefulness and ease of use. When entrepreneurs find AI tools practical and easy to operate, they are far more likely to integrate them into their daily business activities.
The interviews provided deeper insight into how these tools are being used in real business settings.
One of the most immediate benefits identified in the research was improved operational efficiency.
Many entrepreneurs reported using AI as a virtual assistant to handle routine tasks such as drafting emails, generating reports and organising information.
“For small businesses, time is often their most limited resource. When AI helps reduce administrative work, entrepreneurs can redirect their energy toward innovation, strategic planning, and engaging with their customers.”
Supporting data-driven decisions
Another important application identified in the study is improved decision-making.
She said several SME owners described using AI tools to analyse costs, compare suppliers, and identify opportunities to reduce energy consumption. These insights allow businesses to make decisions that support both financial performance and environmental responsibility.
The research also highlighted how generative AI can support innovation within resource-constrained environments.
Some entrepreneurs reported using AI to generate ideas for new products or services, including creative ways to reduce waste or repurpose materials. In several cases, these ideas helped businesses identify new revenue opportunities while minimizing environmental impact.
“Sustainability is often seen as an additional cost for small businesses,” Bahaw noted.
“What we observed is that technology can help entrepreneurs see sustainability as an opportunity for innovation and growth.”
She also pointed out that in today’s digital marketplace, effective communication is essential for business success. The study found that many SMEs are using AI tools to create marketing materials, videos, and social media content that highlight their sustainability initiatives.
This allows smaller firms to communicate their values more effectively and compete with larger organisations that may have dedicated marketing teams.
Practical implications
Bahaw explained that beyond its practical implications for entrepreneurs, the study addresses an important gap in academic research.
While AI has been widely examined in large corporations and advanced economies, relatively little empirical research has explored its role in small island developing states (SIDS) such as T&T.
Bahaw believes this makes the research particularly significant for the region.
“Our Caribbean economies face unique economic and environmental challenges. Understanding how digital technologies can support sustainable entrepreneurship in small island states is critical for shaping future policies and development strategies.”
The research also offers important insights for policymakers seeking to support the growth of the SME sector.
Rather than focussing solely on financial incentives, Bahaw suggests prioritising digital infrastructure, training programmes, and public awareness initiatives that help entrepreneurs understand and use AI tools effectively.
Reliable internet access and improved digital literacy will be essential if SMEs are to fully benefit from emerging technologies.
“If we want our SMEs to thrive in a digital economy, we must ensure that entrepreneurs have the tools, connectivity and knowledge needed to participate.”
New chapter for Caribbean innovation
Bahaw said as T&T prepares for the public launch of its National AI Readiness Report later this year, the research provides a hopeful message for the country’s business community.
She noted that AI is often portrayed as a technology reserved for global corporations and advanced economies yet her work demonstrates that it can also empower the small businesses that form the backbone of local economies.
“The future of sustainable entrepreneurship in the Caribbean will depend on our ability to combine innovation with inclusion. Generative AI gives us an opportunity to do exactly that.”
