As digital transformation accelerates, small businesses in Nigeria are utilizing artificial intelligence (AI) to enhance operations and competitiveness. AI streamlines tasks, improves customer experiences through personalization, and supports data-driven decision-making. Benefits include enhanced customer service via chatbots, operational efficiency through automation, and effective marketing strategies. Despite challenges like data privacy and internet accessibility, adopting AI is increasingly feasible with affordable cloud-based tools. Practical steps for implementation involve identifying improvement areas, researching accessible AI tools, training staff, and starting small. Embracing AI offers a transformative opportunity for growth and sustainability in Nigeria's dynamic market.