What Determines AI Adoption in Companies? Mixed-Method Evidence

Artificial Intelligence (AI) is among the emerging technologies that offer potential competitive advantages, but there is insufficient evidence regarding its use in B2B SMEs in India. This study uses empirical methods to investigate the factors that lead to the successful adoption of AI practices by B2B SMEs in India, as well as the outcomes of this adoption. A conceptual model is formulated using the technology-organization-environment (TOE) framework, which examines how AI enablers and AI readiness influence the competitive advantage with due acceptance of AI practices. To test the theoretical framework, the study used a mixed-method approach; survey data was gathered from 866 employees (managers) of SMEs. The findings suggested that all the AI enablers except perceived benefits and role clarity significantly impacted AI readiness. Further, AI ethics, the moderator of the study, was found to be significant between perceived benefits, role clarity, perceived trust, and competitive advantage.