This in-depth research investigates how AI has changed supply chain management for small businesses, specificallyexamining how AI has improved the effectiveness of operations, decision-making, and cost-effectiveness. Limitations in resources,a lack of technical expertise, and problems with data accessibility are preventing small-scale supply chain management from usingAI despite its disruptive potential. To determine how artificial intelligence might help small businesses gain an edge in the market,this study reviews existing literature and case studies to find relevant AI applications. These applications include demand forecasting,inventory management, and logistics optimization. According to studies, insights provided by AI improve inventory management,supplier relationship control, and quick adaptation to changes in the market. However, many problems prevent the widespreadapplication of AI in small-scale supply chain management. These include high implementation costs, a lack of expertise, and privacyconcerns.This research determined to answer the question, “What are the primary AI applications in SCM for small businesses?" and “Howdoes AI impact operational efficiency, cost savings, and decision-making?” by investigating relevant AI applications. The approachused in the present study is a systematic review. Researchers checked references from reputable internet sources including ResearchGate, Google Scholar, MDPI, Science Direct, IEEE Xplore, and Academia.edu. Fifteen papers (N = fifteen) published between 2020and 2024 were included in the research investigation. This study's findings highlight the need for affordable AI solutions tailored toSMBs and suggest future research directions, including the development of flexible artificial intelligence instruments andcollaborative frameworks to ease their adoption. A comprehensive analysis of AI's potential to improve SME supply chainmanagement is provided by this review, which also highlights critical success factors for AI deployment.Keywords- artificial intelligence, supply chain management, small-scale business, small and medium-sized enterprises, AI adoption,demand forecasting, and inventory management.