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

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  • Gupta, Somya
  • Ghardallou, Wafa
  • Pandey, Dharen Kumar
  • Sahu, Ganesh P.

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.

Suggested Citation

  • Gupta, Somya & Ghardallou, Wafa & Pandey, Dharen Kumar & Sahu, Ganesh P., 2022. "Artificial intelligence adoption in the insurance industry: Evidence using the technology–organization–environment framework," Research in International Business and Finance, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:riibaf:v:63:y:2022:i:c:s027553192200143x
    DOI: 10.1016/j.ribaf.2022.101757
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    Cited by:

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    2. HUO, Peng & WANG, Luxin, 2022. "Digital economy and business investment efficiency: Inhibiting or facilitating?," Research in International Business and Finance, Elsevier, vol. 63(C).

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    More about this item

    Keywords

    Artificial intelligence; Insurance industry; TOE framework; Structural equation modeling; InsurTech;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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