This study advances research and practice related to adopting artificial intelligence (AI) in the context of South Africa (SA). The study evaluated AI adoption by South African manufacturing Small and Medium Enterprises (SMEs); established the challenges faced by manufacturing SMEs in adopting AI; and developed a framework for adopting AI for manufacturing SMEs’ growth and survival. The study adopted a systematic literature review approach. Articles from Scopus and Google scholar databases, ranging from the years 2018 to 2024, were used. Of the 206 articles found, 54 were shortlisted. The systematic review analysis was performed using the PRISMA framework. The results identified AI adoption by South African manufacturing SMEs is low, limiting their innovation and productivity. The results also show, despite the numerous benefits AI adoption can offer manufacturing SMEs in the country, a major constraint is the lack of a framework to enhance adoption and implementation. Hence, this study was conducted to develop a framework to improve AI adoption by South African manufacturing SMEs. The findings contribute to the body of knowledge and provide new insights to manufacturing SME owners/managers, policymakers and practitioners into AI adoption to enhance manufacturing SMEs’ ability to compete on the global stage.