Artificial Intelligence and the Caribbean SME By Reza Sookdeo – ICT Manager (CIO) | Heritage Petroleum Company Limited
LINKAGE Q4 (2025) - HSSE 360: INNOVATION FOR RESILIENCEAcross the Caribbean, AI is no longer a distant concept discussed only in technology forums. It is increasingly embedded in everyday business tools—answering customer queries, summarising documents, forecasting demand, and supporting management decisions. For SMEs, this shift represents a significant opportunity to improve efficiency and competitiveness in markets that are often cost-sensitive and highly relationship-driven.At the same time, AI introduces new risks that many organisations are not yet fully prepared to manage. In small economies where reputation travels quickly and regulatory expectations are rising, a single misstep involving data, automated decisions, or misleading outputs can have consequences far beyond the immediate incident. For Caribbean SMEs, the question is no longer whether AI should be adopted, but how it can be used responsibly and sustainably.The answer lies not in complex technology strategies, but in a clear and practical roadmap that balances innovation with sound risk management.Caribbean SMEs typically operate with lean teams, overlapping roles, and limited tolerance for disruption. Unlike large multinational corporations, they do not have the luxury of absorbing reputational damage or prolonged compliance challenges. Trust—whether from customers, regulators, or business partners, is often one of their most valuable assets.As AI tools become more accessible, many businesses are experimenting informally, sometimes without clear rules around data usage, accountability, or oversight. This creates exposure to risks such as unintended data sharing, biased or inaccurate automated outputs, and dependence on third-party platforms that operate outside regional regulatory frameworks. Without structure, what begins as innovation can quickly become vulnerability. A clear AI roadmap helps organisations move from ad-hoc experimentation to disciplined execution, ensuring AI strengthens the business rather than undermining it.Starting With Business Reality, Not Technology TrendsSuccessful AI adoption in the Caribbean begins with practical business needs, not global technology trends. SMEs that gain real value from AI typically focus on a small number of well-defined use cases, automating customer interactions, improving document handling, supporting financial analysis, or enhancing operational reporting.By starting with clearly articulated business objectives, leaders can better assess whether AI is the right tool for the job and how success should be measured. Just as importantly, this approach makes it easier to identify potential risks early, before AI systems begin to influence customers, employees, or regulatory outcomes.AI should serve the business, not dictate it.Setting Clear Expectations for Responsible AI UseEffective AI governance does not require lengthy policy documents or heavy bureaucracy. For most SMEs, clarity matters more than complexity. Establishing a small set of guiding principles can go a long way in shaping responsible behaviour across the organisation.These principles often emphasise that AI supports, rather than replaces, human accountability; that sensitive information must be handled carefully; and that AI-generated outputs affecting customers or staff should be reviewed. When expectations are clear, teams are better equipped to use AI confidently while staying within acceptable boundaries.In the Caribbean context, where data protection and ethical considerations are increasingly under scrutiny, these principles help align AI use with local legal and cultural expectations.Keeping Oversight Practical and ProportionateGovernance should enable innovation, not slow it down. For SMEs, the most effective oversight models are simple and shared. A small group often including business leadership, IT, operations, and finance can provide sufficient oversight by periodically reviewing AI use cases, approving new tools, and addressing emerging risks.This shared ownership model ensures AI decisions are aligned with business priorities and that responsibility does not rest with a single individual or department. It also reflects the reality of many Caribbean organizations, where collaboration across functions is essential.Understanding the Risks That Matter MostAI introduces risks that differ from traditional systems. Outputs may be probabilistic rather than predictable, models can change over time, and many tools rely on third-party platforms operating beyond local jurisdictions.For Caribbean SMEs, the most significant risks often involve data privacy, accuracy of customer-facing outputs, bias in automated recommendations, and overreliance on external vendors. Rather than attempting to address every possible risk, organisations are better served by focusing on those that could most directly affect trust, compliance, and continuity.By prioritising risks based on likelihood and impact, businesses can allocate their limited resources more effectively.Building Capability Over TimeAI maturity is not achieved in a single step. Most SMEs progress gradually, first establishing basic controls and ownership, then strengthening oversight and skills, and eventually refining governance as AI use becomes more embedded in the business.This phased approach allows organisations to learn from experience, adapt to changing regulations, and scale AI use without introducing unnecessary disruption. It also aligns with the realities of SME growth in the Caribbean, where incremental progress is often more sustainable than large, rapid transformations.Responsible AI as a Competitive AdvantageIn a region where relationships and reputation are central to business success, responsible AI use can become a differentiator. Organisations that demonstrate discipline in how they use AI are better positioned to build trust, attract partners, and respond to regulatory change with confidence. Rather than viewing governance as a constraint, forward-looking SMEs are beginning to see it as an enabler one that allows them to innovate safely and consistently.Artificial intelligence will continue to shape how Caribbean businesses operate. As tools become more powerful and accessible, the gap between those who use AI deliberately and those who adopt it haphazardly will widen.For SMEs, long-term success will depend not on access to AI, but on the quality of decisions surrounding its use. A practical, business-led AI roadmap grounded in risk awareness and accountability offers a path to innovation that is both ambitious and responsible. ABOUT THE AUTHORReza Sookdeo is the ICT Manager (CIO) at the Heritage Petroleum Company Limited
