Exploring the Relationship Between AI Adoption and the Integration of Digital Technology in Enterprises

Abstract

In recent decades, digital technologies undeniably have become integral parts of our everyday lives, and businesses cannot afford to ignore them. Digital technologies have revolutionized the way companies operate and communicate with their customers. Thus, adopting digital technologies in businesses has become an essential aspect of their growth and development. It has also become critical for businesses to embrace digital technologies in order to remain competitive and meet customer expectations. As enterprises increasingly adopt digital technologies, there is growing interest in the relationship between this trend and the adoption of artificial intelligence (AI). With the growing prevalence of digital technology in businesses, AI has become a crucial tool for improving efficiency, productivity, and decision-making, inter alia. The current research aims to examine the relationship between the level of enterprises that use at least one of the AI technologies and the Integration of Digital Technology dimension from the DESI Index, measured by its sub-dimensions. The results show a positive correlation between the level of AI technology adoption by enterprises and their digital performance. Differently stated, countries registering more widespread AI adoption tend to achieve higher levels of digital integration at the business level. Indirectly, the current analysis findings suggest that policymakers and business leaders should focus on creating a supportive environment for digital innovation to foster the growth of AI and other emerging technologies. The results could also have implications for researchers interested in understanding the role of AI and digital technology in driving economic growth and competitiveness in the digital era.