Small- and medium-sized enterprises (SMEs) are critical economic contributors, offering innovation and employment opportunities. Knowledge management (KM) within these enterprises is increasingly essential for strategic decision-making and competitiveness. This paper provides a comprehensive overview of machine learning (ML) applications’ latest trends and future research directions in SMEs’ knowledge management. We explore the potential for integrating domain knowledge with machine learning, developing cost-effective ML implementations, and creating robust, scalable ML solutions. The findings of this study indicate a need for efficient knowledge transfer, real-time decision-making, privacy preservation, and automated machine learning (AutoML) for SMEs. This study underscores the potential of machine learning to transform knowledge management within SMEs, bridging the technological gap and paving the way for enhanced strategic growth, especially in developing economies.