Understanding the Factors Influencing Artificial Intelligence Adoption in Organizations: An Empirical Investigation of Technological, Organizational, and Environmental Determinants

Abstract

Artificial Intelligence (AI) is increasingly being adopted by organizations to improve operational efficiency, decision-making, innovation, and organizational performance; however, the successful adoption of AI depends on a combination of technological, organizational, and environmental conditions. This study examined the factors influencing AI adoption in organizations by focusing on technological determinants, organizational determinants, and environmental determinants. A quantitative research design was employed, and data were collected through a structured adopted questionnaire administered using Google Forms. The study included a sample of 423 respondents selected through purposive sampling from employees and professionals working in organizations and institutions in Pakistan. The collected data were organized in Microsoft Excel and analyzed using IBM SPSS through descriptive statistics, reliability analysis, Pearson correlation, multiple linear regression, independent-samples t-test, and one-way ANOVA. The findings indicated that technological, organizational, and environmental determinants were positively associated with AI adoption, while all three factors significantly contributed to explaining organizational AI adoption. The results further indicated significant differences in AI adoption across selected demographic groups. The study is significant because it provides an integrated understanding of the conditions that support AI adoption and highlights the importance of technological readiness, organizational capacity, management support, and favorable external conditions. The findings can assist organizational managers, policymakers, and other stakeholders in developing appropriate strategies for effective AI implementation and organizational preparedness.