Harnessing Artificial Intelligence (AI) for enhanced organizational performance in public sectors

The increasing importance of artificial intelligence (AI)-driven activities in public organizations necessitates the development of digital transformation capabilities. This paper explores how public organizations can effectively harness AI to enhance organizational performance by driving change in key organizational activities. Through a survey-based study conducted in Vietnam, data were collected from 189 valid respondents. Structural equation modeling was employed to analyze the data. The results indicate that AI capabilities have a positive impact on workflow automation, novel insights generation, and interaction enhancement. Workflow automation and novel insights generation were found to positively influence organizational performance, while interaction enhancement had an insignificant negative effect. These findings shed light on the essential resources that constitute AI capabilities and demonstrate the effects of nurturing such capabilities on crucial organizational activities and, consequently, organizational performance.