---
title: How Manufacturing SMEs Can Turn AI Into a Competitive Edge
description: Shin’s Horasis article, Closing the SME AI Adoption Gap, offers three strategic principles for manufacturing SMEs to thrive in an AI-forward future.
---

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# [How Manufacturing SMEs Can Turn AI Into a Competitive Edge](https://www.o2oh.com/newsandupdates/how-manufacturing-smes-can-turn-ai-into-a-competitive-edge)

 Written by [one to ONE Holdings](https://www.o2oh.com/newsandupdates/author/one-to-one-holdings) | 2026/04/06

### Without losing what makes them strong

> *Closing the AI gap is about driving competitiveness, resilience, and agility in an increasingly volatile landscape.*
> 
> — Shinichiro (Shin) Nakamura, President, one to ONE Holdings
> 
>  Shin Nakamura, President of one to ONE Holdings Pte. Ltd. (o2Oh), has published a new thought leadership article on Horasis titled *"**Closing the SME AI Adoption Gap**,"* offering practical guidance for manufacturing SMEs navigating AI adoption. 
> 
>  A recent OECD report cited in the article notes that 40% of large enterprises have adopted AI, compared to only 11.9% of firms with fewer than 50 employees. This gap threatens competitiveness and global economic stability, as SMEs account for two-thirds of jobs and over half of global GDP.

Shin outlines three principles for SMEs seeking to close the gap:

1. **Pursue both horizontal and vertical AI integration  
   **Apply AI to both core operations and cross-functional processes to strengthen supply chain resilience.
2. **Use AI as a strategic tool, not a cost-cutting shortcut  
   **AI investment decisions should focus on long-term competitive advantage rather than short-term trends.
3. **Build internal know-how and protect proprietary expertise  
   **Retain core knowledge internally. People-focused training and cross-industry collaboration help build sustainable AI capabilities.

"SMEs that take a strategic, people-centered approach to AI can strengthen resilience while preserving their unique operational advantages," Shin writes. "SMEs are an important driver of an AI-forward future where efficiency and speed are maximized."

To read the full article, visit [Horasis](https://horasis.org/closing-the-sme-ai-adoption-gap/).

**[[Join the o2Oh Intelligence Network](https://www.o2oh.com/contact)] **Receive expert perspectives on optimizing digital ecosystems and closing the productivity gap.

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