In today's rapidly evolving business landscape, organizations across industries are increasingly seeking to capitalize on the opportunities offered by digital transformation, particularly through Artificial Intelligence (AI). Yet, many organizations struggle to fully harness the potential of these emerging technologies. This study contributes to the ongoing discourse on the organizational factors that drive effective AI adoption, focusing on how organizational readiness influences AI adoption and performance. Specifically, we explore the relationship between Strategic and Cognitive readiness and AI adoption, examining their roles in advancing Sustainability and Economic outcomes. Using data from 511 employees in the pharmaceutical industry and employing Structural Equation Modeling, our analysis reveals that (i) strategic and cognitive readiness positively influence AI adoption; (ii) AI adoption mediates the positive relation between strategic and cognitive readiness and SDG performance; (iii) SDGs attainment mediates the relationship between AI adoption and economic performance; (iv) SDGs performance enhances economic performance; and that (v) this relationship is more pronounced in smaller organizations. Our findings contribute to the ongoing research on the organizational determinants of effective AI adoption and highlight the critical role of this technology in supporting both SDGs achievement and economic viability. • Organizational readiness for digital innovation leads to enhanced AI adoption levels. • AI adoption leads to enhanced Economic Performance, mediated by SDGs attainment. • SDGs attainment leads to enhanced Economic Performance. • Small Organizational Size moderates the effect between SDGs and Economic outcomes.
Miozza et al. (Thu,) studied this question.