The Impact of Artificial Intelligence on Business Performance in Saudi Arabia: The Role of Technological Readiness and Data Quality

This study aims to examine the impacts of Machine Learning (ML) and Artificial Intelligence (AI) capabilities on Business Performance (BP) of technology enterprises in the Kingdom of Saudi Arabia (KSA). Building on established theories such as the Resource-Based View (RBV) and the Technology Organization Environment (TOE) framework, the study proposes that AI and ML capabilities impact business performance. Their effects are anticipated to be mediated by Technological Readiness (TR) and moderated by Data Quality (DQ). A total of 190 executives and IT professionals in KSA participated in this study. Smart PLS 4 was used to analyze the data. The findings showed that AI and ML capabilities positively affected business performance. Technological readiness acted as a mediator in the relationship between AI and ML capabilities, and BP. Data quality significantly increased the impact of AI capabilities on BP. The business performance of enterprises in KSA will increase with the presence of efficient AI and ML capabilities as well as the development of a high level of technological readiness and data quality.