Unveiling Barriers and Enablers: A Study on AI Adoption in Business Management

Abstract

This study investigates the barriers and enablers of AI adoption in business management using a mixed-method approach combining survey data and comprehensive literature review. The study found sector-specific trends in the sectors, which are seen to be at the forefront in AI integration: Manufacturing and IT in terms of automation and innovative applications; Healthcare and Finance in terms of use of AI for diagnostics and predictive analytics. The study identifies a number of significant barriers to AI adoption, including financial constraints, lack of IT infrastructure, resistance to change at the organizational level, and ethical concerns around data privacy, security, and algorithmic bias. All of these are consistently supported by both survey data and the existing body of literature. On the other hand, it also mentions some key enablers that facilitate the adoption of AI, which includes visionary leadership, up-to-date IT systems, and potential cost savings. Commitment from leadership and an organization's clear vision for innovation is one of the important factors that encourage AI adoption. The use of theoretical frameworks like Technology Acceptance Model and DOI Theory examines the role of leadership, organizational preparedness, and perceptions of the usefulness of AI. This is essential in stimulating adoption of AI since it determines readiness of the organization and value perceived for AI technologies.  The findings underscore how strong organizational infrastructure, a supportive culture that encourages innovation, and strategic vision are essential in enabling the crossing of barriers to achieve full AI deployment. This study underscores the importance of innovation-friendly culture: one that supports learning and adaptation and aligns AI adoption with broader organizational objectives. The study integrates qualitative insights along with quantitative analysis to provide a sophisticated understanding of the complex dynamics regarding AI adoption in business management. It provides actionable recommendations for business to navigate challenges and leverage AI for operational efficiency, innovation, and long-term competitive advantage.