Artificial Intelligence Readiness and Digital Competence as Predictors of Procurement Service Quality in Higher Education Institutions

Artificial intelligence and digital technologies are increasingly embedded in higher education administration, creating new demands for employees' technological preparedness and digital capabilities. In procurement, where electronic processes and technology-supported services are increasingly used, limited evidence has examined whether Artificial Intelligence Readiness and Digital Competence predict Procurement Service Quality. This study examined the levels of these constructs, their relationships, and the predictive contribution of Artificial Intelligence Readiness and Digital Competence to Procurement Service Quality among employees in a Cebu-based private higher education institution in the Philippines. A quantitative, non-experimental, cross-sectional descriptive-correlational design was employed. Data were collected from 80 employees with experience interacting with procurement-related services using a structured 30-item questionnaire measuring the three constructs. Descriptive statistics, Pearson product–moment correlation, and multiple linear regression were used, supported by reliability and factor-analytic procedures. Respondents reported very high levels of Artificial Intelligence Readiness and Digital Competence, while Procurement Service Quality was rated high. Both predictors demonstrated significant positive relationships with Procurement Service Quality. The regression model was statistically significant and explained 35.0% of the variance in Procurement Service Quality. Artificial Intelligence Readiness significantly and positively predicted Procurement Service Quality, supporting H1, while Digital Competence also significantly and positively predicted Procurement Service Quality, supporting H2. The findings indicate that employees' preparedness to engage with AI and their broader digital capabilities are relevant to technology-enabled procurement service delivery. Higher education institutions may therefore integrate AI readiness, responsible technology use, and digital competence development into employee development and administrative improvement initiatives to support effective procurement service delivery.