Artificial Intelligence Adoption, Administrative Efficiency, and E-Citizen Integration in Spanish Local Government: A PLS-SEM Analysis

How does artificial intelligence (AI) adoption shape administrative efficiency and e-citizen integration in local governments, and what role does professional development play in mediating these relationships? Drawing on a survey of 500 municipal employees across Spanish municipalities, this study employs partial least squares structural equation modelling (PLS-SEM), with formal non-linearity testing via Warp3 algorithms, to test a theoretically grounded model. The conceptual framework integrates Digital Transformation Theory and Public Value Theory as primary explanatory lenses, while drawing on the Technology Acceptance Model (TAM) and Total Factor Productivity (TFP) logic as complementary background perspectives that contextualise rather than directly operationalise the micro-level findings. Structural results reveal that AI adoption exerts a strong direct (and statistically linear) effect on perceived administrative efficiency (β = 1.04, p < 0.001; the standardised coefficient exceeding 1.0 and R2 > 1 are a legitimate WarpPLS warp-model fit index rather than evidence of model misspecification: the Warp3 warp functions inflate the variance of predicted efficiency and break the additive identity SST = SSM + SSE, with the high AI–PD collinearity (r ≈ 0.84) as the contributing mechanism (RSCR = 1.000, SSR = 1.000); a comparative re-estimation without the moderation term yields β = 0.87 and R2 = 0.76; we adopt this parsimonious specification (β ≈ 0.87, R2 = 0.76) as the substantively interpretable estimate, with predictive relevance confirmed by a high Stone–Geisser Q2 = 0.685, indicating that the model fits and predicts well rather than overfitting, while simultaneously stimulating professional development (β = 0.84, p < 0.001, R2 = 0.70). Professional development positively predicted both efficiency (β = 0.27, p < 0.001) and e-citizen integration (β = 0.26, p < 0.01). Efficiency is the primary driver of e-citizen integration (β = 0.54, p < 0.001, R2 = 0.53). The proposed moderation of AI adoption by professional development on efficiency was not supported (β = −0.01, p = 0.44), suggesting additive rather than synergistic effects. Model fit was robust (GoF = 0.701; ARS = 0.749; APC = 0.495); convergent and discriminant validity were confirmed by composite reliability, average variance extracted, Fornell–Larcker, and HTMT criteria; and common method bias diagnostics (Harman’s single-factor test, full-collinearity AFVIF, and marker-variable analysis) indicated that systematic method variance was not a material threat. These findings offer micro-empirical evidence of the mechanisms linking AI adoption to citizen service outcomes via a professional development pathway and provide actionable recommendations for Spanish and European municipalities navigating AI-driven governance reform.