Purpose This study aims to explore the adoption of artificial intelligence (AI) initiatives within Indian organizations, using the technology-organization-environment (TOE) framework to understand the key drivers and barriers. The primary objective is to identify the critical factors influencing successful AI integration, including technological readiness, organizational capacity and environmental pressures. Design/methodology/approach The authors conducted in-depth interviews of 26 executives of large business organizations in India. These experts had in recent times managed the digital transformation journey in their organizations based upon AI tools. A semistructured open ended interview questionnaire was used to conduct in-depth personal interviews with the experts. The data was content analyzed for themes. Findings The research study findings indicated that to increase adoption of Al based digital initiatives, it was imperative to cater to three elements of the TOE framework. Sub themes from the three themes, namely technology, organization and environment were considered to evaluate the impact of them on the adoption of AI as part of digital transformation in organizations. The investigation revealed that increase in organizational AI tools adoption could be achieved by first initiating awareness and sensitization incentives. Second, both short term and long duration training programs on machine learning and AI must be conducted. This had to be undertaken especially amongst the users to enhance the ease of use of the AI-based digital transformation tools. New organizational AI capabilities have to be built symbiotically with the legacy enterprise information systems of the organization. Dedicated information technology resources were required to be developed. The study findings also indicated that managers have to be aware of legal compliance while using AI. Furthermore, executives must comprehend the rapid change both in AI tools potency and also in customer behavior. Leadership support from top management team was also a key factor which accelerated and facilitated adoption of AI-based digital transformation initiatives. The results indicate that AI adoption depends not only on technical capabilities, but also on organizational culture and external forces. The paper concludes with practical recommendations for managers and policymakers to enhance AI adoption strategies, offers theoretical implications for future research, and highlights the need for targeted interventions to address ongoing challenges in digital transformation within the Indian context. Practical implications This research study findings would help managers leading AI enabled digital transformation initiatives in their firms. The findings would help the managers understand what went right and what could potentially go wrong during implementation of artificial intelligence initiatives in organizations. The study findings can act as a guiding principle workbook for organizations which are planning to embark on the journey of launching AI led transformation in their organizations by focusing on internal (technology and organization) and external (environment) factors. The study also sheds light on how organizations are driven by external catastrophic events like Covid-19 pandemic. The study findings will also be relevant for the change leaders of organizations to understand how to be the chief narrator of AI based digital transformation. Furthermore, it would also help executives regarding how to track AI adoption to measure success of the digital initiatives in organizations. Social implications The authors conducted an empirical investigation. The authors explicated what factors facilitated AI-based digital transformation initiatives. The study was anchored in the theoretical foundation of Technology Organization TOE framework. Thus, this research contributed to the theory of TOE in the context of AI-based digital transformation. This will assist research in studying how the various elements of technology (skills, trust on technology and knowledge on the subject), organization (readiness and support from leadership) and environment (consumer behavior, competitive pressure and government regulation) impact the adoption of AI initiatives in organizations. This study was conducted during and post Covid −19 which gave us an opportunity to study the impact of factors like change in customer behavior, accelerated initiation on adoption of digital initiatives for organizations and hence, the impact of a pandemic on firms in emerging economies while deriving the inferences. Originality/value This empirical research investigation was one of the initial studies that examined organizational AI-based digital transformation planning and execution journey using the theoretical perspectives of TOE. The need for the paper is to address gaps in existing research by exploring factors that influence the adoption of AI within Indian organizations using a qualitative approach. While the concept of TQM and AI has been researched previously, the authors aim to contribute by analyzing specific drivers, barriers, and contextual influences relevant to the Indian setting. This addresses the lack of in-depth understanding about how these factors operate in India, which is important for both theoretical and managerial implications.
Gupta et al. (Fri,) studied this question.
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