Sarcouncil Journal of Engineering and Computer Sciences

Abstract: The integration of Artificial Intelligence and Machine Learning technologies is fundamentally reshaping risk management in the Small and Medium-sized Business (SMB) payments sector. Traditional risk assessment methods are being replaced by intelligent AI-driven systems that offer greater accuracy, adaptability, and operational efficiency. These AI-driven solutions enable superior fraud detection, streamlined KYC/AML processes, and real-time anomaly detection by processing large volumes of transaction data instantaneously. Beyond enhanced security, they deliver measurable improvements in operational efficiency and regulatory compliance. Implementation challenges are addressed through strategic data architecture design, model selection, and integration frameworks. As AI/ML technologies continue to evolve, they promise to further advance risk detection capabilities, regulatory alignment, and scalable security within SMB payments.