Infusing Artificial Intelligence (AI) into SME is also proving to be a major contributing factor in ensuring operational excellence, particularly in Oman. It provides in this paper a broad AI framework to forecast and maximize the productivity of SMEs in order to address the SMEs’ unique problems such as limited resources and traditional decision-making processes. The model includes AI adoption drivers, metrics and continuous improvement strategies that help SMEs develop a roadmap on how to implement AI into their company. Automation and resource management are at the heart of AI’s promise to reduce costs and enables SMEs to work more effectively and make better, data-driven decisions that facilitate strategic planning and higher returns. According to the paper, AI will help SMEs save costs, enhance efficiency, and facilitate decision making, which will increase their competitive edge. Further, integration of AI with other technologies such as the IoT and blockchain is also emphasized to promote digital transformation and expand SMEs’ market share. This research should be used as a guide to SME leaders and policymakers in Oman and part of the Vision 2040 economic plan for the country, which recognizes SMEs as the key to economic development and innovation. By using the AI model outlined above, SME would not only achieve operational excellence but also enhance customer experience and business performance and have the advantage to be able to respond effectively to market demands and leverage the opportunities. The study adds to the wealth of knowledge regarding AI adoption among Omani SMEs and provides real-life lessons for SMEs owners and managers to embrace a culture of innovation and invest in training and education.