Abstract : The study explores how artificial intelligence (AI) and fintech innovations are transforming small and medium-sized enterprises (SMEs) financing by enhancing transparency, efficiency, and financial inclusion in the digital economy. While previous research highlights AI and fintech's potential to revolutionize financing, there remains a gap in understanding how these technologies impact SMEs across different geographical regions and industries. Moreover, challenges such as the adoption of AI solutions, regulatory constraints, and the integration of decentralized data mechanisms in financial services are under-explored. The systematic review investigates the impact of artificial intelligence (AI) and fintech innovations on small and medium-sized enterprise (SME) financing. It follows rigorous eligibility criteria, including the inclusion of recent peer-reviewed articles published from 2024 and focusing on AI-driven solutions and digital financial platforms. Studies are selected from a comprehensive database search across Scopus, Web of Science, and others. Data extraction involves categorizing study details, methodologies, key findings, and geographical context. The synthesis highlights AI applications in risk assessment, credit scoring, financial inclusion, and efficiency, offering insights into global SME financing trends and challenges. Ethical considerations ensure privacy, transparency, and fairness in AI practices. Key findings indicate that AI-driven solutions have enhanced financing efficiency by reducing processing times by up to 40% and improved loan approval rates by 25%, enabling better access to capital for SMEs. Additionally, fintech innovations have contributed to a 30% increase in financial inclusion for underserved SMEs, particularly in emerging economies. However, barriers such as data privacy concerns and limited technological infrastructure in certain regions continue to pose challenges. The novelty of the study lies in its focus on AI and fintech's potential for improving the financial performance of SMEs in the digital economy, offering practical insights for policymakers, financial institutions, and entrepreneurs. The findings emphasize that AI-powered systems can enhance operational efficiency, transparency, and decision-making processes for SME financing. The study's implications suggest that future research should focus on overcoming barriers to AI adoption and exploring cross-country comparisons to understand regional variations. Limitations include a focus on English-language publications and the exclusion of non-peer-reviewed sources, which may restrict the generalizability of the findings. Future studies should investigate the long-term impact of AI and fintech on SME sustainability and explore the regulatory frameworks needed to support these innovations.