Adoption of Artificial Intelligence in an Organizational Context: Analysis of the Factors Influencing the Adoption and Decision-Making Process

Verena Eitle

Publications of Darmstadt Technical University, Institute for Business Studies (BWL) from Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL)

Abstract: The emergence of Artificial Intelligence (AI) shifts the business environment to such an extent that this general-purpose technology (GPT) is prevalent in a wide range of industries, evolves through constant advancements, and stimulates complementary innovations. By implementing AI applications in their business practices, organizations primarily benefit from improved business process automation, valuable cognitive insights, and enhanced cognitive engagements. Despite this great potential, organizations encounter difficulties in adopting AI as they struggle to adjust to corresponding complex organizational changes. The tendency for organizations to face challenges when implementing AI applications indicates that AI adoption is far from trivial. The complex organizational change generated by AI adoption could emerge from intelligent agents’ learning and autonomy capabilities. While AI simulates human intelligence in perception, reasoning, learning, and interaction, organizations’ decision-making processes might change as human decision-making power shifts to AI. Furthermore, viewing AI adoption as a multi-stage rather than a single-stage process divides this complex change into the initiation, adoption, and routinization stages. Thus, AI adoption does not necessarily imply that AI applications are fully incorporated into enterprise-wide business practices; they could be at certain adoption stages or only in individual business functions. To address these complex organizational changes, this thesis seeks to examine the dynamics surrounding AI adoption at the organizational level. Based on four empirical research papers, this thesis presents the factors that influence AI adoption and reveals the impact of AI on the decision-making process. These research papers have been published in peer-reviewed conference proceedings. The first part of this thesis describes the factors that influence AI adoption in organizations. Based on the technology-organization-environment (TOE) framework, the findings of the qualitative study are consistent with previous innovation studies showing that generic factors, such as compatibility, top management, and data protection, affect AI adoption. In addition to the generic factors, the study also reveals that specific factors, such as data quality, ethical guidelines, and collaborative work, are of particular importance in the AI context. However, given these technological, organizational, and environmental factors, national cultural differences may occur as described by Hofstede’s national cultural framework. Factors are validated using a quantitative research design throughout the adoption process to account for the complexity of AI adoption. By considering the initiation, adoption, and routinization stages, differentiating and opposing effects on AI adoption are identified. The second part of this thesis addresses AI’s impact on the decision-making process in recruiting and marketing and sales. The experimental study shows that AI can ensure procedural justice in the candidate selection process. The findings indicate that the rule of consistency increases when recruiters are assisted by a CV recommender system. In marketing and sales, AI can support the decision-making process to identify promising prospects. By developing classification models in lead-and-opportunity management, the predictive performances of various machine learning algorithms are presented. This thesis outlines a variety of factors that involve generic and AI-specific considerations, national cultural perspectives, and a multi-stage process view to account for the complex organizational changes AI adoption entails. By focusing on recruiting as well as marketing and sales, it emphasizes AI’s impact on organizations’ decision-making processes.

Date: 2023-10-13
New Economics Papers: this item is included in nep-ain, nep-cmp and nep-cse
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