Abstract: Rural and remote SMEs are likely to be digitally disadvantaged due to their location and organization size. As AI continues to be added many everyday products, services, applications and devices, the potential exists to either widen or narrow the gap. Building upon existing digital divide literature we propose a fourth wave of digital divide to address the concerns of AI. Our research aims to develop an understanding of how AI impacts the digital experience of regional and remote SMEs through the application of Activity Theory. This study will provide a robust foundation for further research into AI in and the digital divide, with a focus directed by from regional and remote SME participants.