aceAssessing the nexus of Generative AI adoption, ethical considerations and organizational performance
Numerous enterprises employ Generative AI (GenAI) for a plethora of business operations, which can enhance organizational effectiveness. The adoption might be driven by multiple factors influencing the business landscape. Additionally, numerous ethical considerations could impact the deployment of GenAI. This unique study investigated how organizations adopt GenAI and its effects on their performance. Further, this research utilized institutional theory and ethical guidelines for AI design to develop a research…
N-gram analysis results – top 20 recurrent 4-g for the 137 descriptions of "privacy" in AI governance guidelines by Authors of the study: Nicholas Kluge Corrêa Camila Galvão James William Santos Carolina Del Pino Edson Pontes Pinto Camila Barbosa Diogo Massmann Rodrigo Mambrini Luiza Galvão Edmund Terem Nythamar de Oliveira. CC BY 4.0 · https://creativecommons.org/licenses/by/4.0
Researchers surveyed 384 managers in IT and IT-enabled services firms and modeled Generative AI adoption using institutional theory and AI ethics principles. By July 2024 they reported that coercive, normative and mimetic pressures, along with fairness, accountability, transparency, accuracy and autonomy, influence GenAI use, which in turn influences organizational performance moderated by innovativeness.
The result matters because it links external institutional pressures and internal ethical criteria to a business outcome rather than just technical capability, suggesting levers for managers and policymakers. What remains uncertain is whether the performance association holds outside IT/ITeS contexts, over time, or with objective performance measures rather than manager-reported survey data.
- Survey of 384 managers from IT and ITeS companies analyzed with PLS-SEM to validate adoption model.
- Institutional pressures identified as coercive, normative and mimetic forces influencing GenAI use.
- Ethical principles of fairness, accountability, transparency, accuracy and autonomy found to influence GenAI use.
Surveyed IT and ITeS managers report that organizational use of Generative AI is associated with improved organizational performance, with the relationship moderated by organizational innovativeness.
The rundown
The study built a framework using institutional theory and ethical guidelines for AI design, then tested it with PLS-SEM on responses from 384 IT and ITeS managers. It reports that coercive, normative and mimetic institutional pressures shape GenAI use.
It also reports that ethical considerations including fairness, accountability, transparency, accuracy and autonomy influence use, and that use in turn influences performance contingent on organizational innovativeness, offering implications for developers, senior management and policymakers.
Sources
- Peer-reviewedTechnovation2024-07-01
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