Unraveling Generative AI Adoption in Enterprise Digital Platforms: The Effect of Institutional Pressures and the Moderating Role of Internal and External Environments

Abstract

Despite the transformative potential of generative artificial intelligence (AI) systems within enterprise digital platforms, there still exist gaps in understanding the challenges and strategies associated with their adoption. Addressing this pressing issue, this article draws upon institutional theory to delve into the drivers influencing firms’ adoption of generative AI within their enterprise digital platforms. Leveraging survey data collected from 328 firms that have implemented digital platforms to support their business operations, we find that institutional pressures positively influence generative AI adoption within their enterprise digital platforms. Furthermore, we identify salient moderating effects of policy uncertainty and innovative culture in shaping the relationships. Our research findings make a substantial contribution to AI literature by illuminating the potential challenges and strategies toward generative AI adoption as well as reassessing the application of institutional theory within the digital landscape.