Exploring determinants influencing artificial intelligence adoption, reference to diffusion of innovation theory

Abstract

An organization's ability to accept innovation heavily depends on its leadership caliber. Although leadership is known to affect all three stages of adoption (initiation, adoption, and routinization), literature has yet to examine the specific leadership components that contribute to each of these phases. Drawing from existing literature on transformational leadership and AI adoption, this article examines how transformational leadership can facilitate the successful implementation of AI technologies. This paper explores the intersection of transformational leadership and artificial intelligence (AI) adoption within organizations. This study used data from 250 companies to develop and evaluate a framework combining the Diffusion of Innovation (DOI) theory with transformational leadership (TL). The results were analyzed using structural equation modeling (SEM) techniques. The study examined the determinants influencing the adoption of AI as a new technology. This study found TL is a crucial driver of adoption, whereas elements like vision and intellectual stimulation are essential for the Intention to adopt. Also, this research indicates that adopting a significant innovation like AI is intricately linked to leaders' vision and ability to respect and recognize the feelings and needs of others (both indicators of offering individual assistance). Additionally, practical implications and recommendations for leaders are provided to navigate the complex landscape of AI adoption.