Artificial intelligence adoption in the insurance industry: Evidence using the technology–organization–environment framework

Abstract

Using the technology–organization–environment framework, this study examines the factors influencing the behavioral intention of insurance industry employees to adopt artificial intelligence (AI)-enabled applications. With two factors from the technology dimension and three factors each from the organization and environment dimensions, we collected data from 358 employees in the Indian insurance industry. We use structural equation modeling to test what variables significantly impact employees' behavioral intentions to adopt AI in the insurance industry. While all technological (relative advantage and complexity) and environmental (market dynamics, regulatory support, and competitive pressure) variables significantly predict behavioral intention, only top management support and financial readiness among the environmental variables indicate a significant association with the behavioral intention for AI adoption. Accordingly, technical competencies did not have a significant impact on behavioral intention. This study has important managerial implications for emerging economies.