Abstract This study aims to identify the key factors influencing the adoption of generative AI (GenAI) by Vietnamese banks and highlight the challenges and opportunities in digital transformation. It extends the technology-organization-environment (TOE) framework to incorporate GenAI-specific factors in the Vietnamese banking sector, characterized by rapid digitization and stringent regulations. A survey yielded 236 valid responses. The data were analyzed via partial least squares structural equation modeling (PLS-SEM). The key factors identified include organizational readiness (OR), compatibility (CPT), competitive pressure (CP), complexity (CPL), relative advantage (RA), firm size (FS), and government support (GS). OR emerged as the most influential factor because of a robust IT infrastructure and skilled personnel. CPT and CP were also significant, driving banks to adopt GenAI for a competitive edge. However, CPL presents challenges, requiring simpler AI solutions and clear risk mitigation policies. This study enhances the understanding of GenAI adoption within the Vietnamese banking sector, emphasizing the importance of tailored strategies for different bank sizes and the critical role of technology readiness for effective integration. The findings provide actionable insights into banks navigating their digital transformation journeys.
Youssef et al. (2025) studied this question.