Factors Influencing the AI Adoption in Organizations

Abstract

Adoption of Artificial Intelligence (AI) in organizations is getting popular due to the impact it is creating in business and society. While AI as a technology has made progress due to advances in various research areas, there is limited study on the adoption of AI in organizations. This article intends to develop a model for identifying the factors influencing AI adoption in organizations. We developed the model using Diffusion of Innovation and Technology-Organization-Environment theories, adopted from the field of Information Systems. In this article, we provide an analysis of application of theories toward AI adoption and provide a model at organization level. We collected data by designing a survey on 7-point Likert scale to validate our proposed model using regression-based approach and structural equation modelling. The results suggest that the change capability of an organization and leadership positively impact the AI adoption in organizations. Further, our study reflects that AI readiness by the organizations and AI adoption by trading partners of an organization also impact AI adoption positively.