When Readiness Is Not Enough: Explaining the AI Adoption Paradox in Organisations from a Developing Economy

Artificial intelligence (AI) adoption is increasingly recognised as a strategic driver of productivity growth, innovation efficiency, resource optimisation, and sustainable economic competitiveness in knowledge-intensive organisations. Particularly in developing economies, firms invest in AI technologies to enhance operational performance, strengthen strategic decision-making, and create long-term economic value. However, organisational readiness does not always translate into successful implementation. This study examines the determinants of AI adoption and introduces the concept of the AI Adoption Paradox, where readiness conditions fail to produce corresponding adoption. Using survey data from 410 professionals across knowledge-intensive sectors in Sri Lanka, Partial Least Squares Structural Equation Modelling (PLS-SEM) was applied. The findings reveal that AI awareness, technological infrastructure, and top management support positively influence AI adoption, while digital skills readiness demonstrates a significant inverse relationship. Organisational culture significantly moderates the relationship between digital skills readiness and AI adoption. The findings suggest that sustainable AI adoption depends not only on readiness, but on an organisation’s ability to convert readiness into behavioural acceptance and strategic economic value.

Authors

Institutions

Publication Details

Published
2026-05-21
DOI
https://doi.org/10.65957/article.17
Primary Topic
AI in Service Interactions
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

When Readiness Is Not Enough: Explaining the AI Adoption Paradox in Organisations from a Developing Economy

Hansini Pramudika, Madhura Fernando
AI in Service Interactions
article

When Readiness Is Not Enough: Explaining the AI Adoption Paradox in Organisations from a Developing Economy

Hansini Pramudika, Madhura Fernando
article en

Abstract

Artificial intelligence (AI) adoption is increasingly recognised as a strategic driver of productivity growth, innovation efficiency, resource optimisation, and sustainable economic competitiveness in knowledge-intensive organisations. Particularly in developing economies, firms invest in AI technologies to enhance operational performance, strengthen strategic decision-making, and create long-term economic value. However, organisational readiness does not always translate into successful implementation. This study examines the determinants of AI adoption and introduces the concept of the AI Adoption Paradox, where readiness conditions fail to produce corresponding adoption. Using survey data from 410 professionals across knowledge-intensive sectors in Sri Lanka, Partial Least Squares Structural Equation Modelling (PLS-SEM) was applied. The findings reveal that AI awareness, technological infrastructure, and top management support positively influence AI adoption, while digital skills readiness demonstrates a significant inverse relationship. Organisational culture significantly moderates the relationship between digital skills readiness and AI adoption. The findings suggest that sustainable AI adoption depends not only on readiness, but on an organisation’s ability to convert readiness into behavioural acceptance and strategic economic value.

Clinical Insights (US)
Industry, innovation and infrastructure
Openalex Percentile: Top 4%
AI in Service Interactions
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.