Determinants of Successful IoT and AI Initiatives in the SMART Economy: An Enterprise Perspective

AI/IoT initiatives are increasingly adopted in business, yet reported success varies substantially across firms. This study develops and evaluates a firm-level predictive framework for the reported AI/IoT success rate, measured on a bounded 0–100 scale. Using enterprise survey data from Slovakia and the Czech Republic ( n = 1250), we compare a regularized linear baseline (Elastic Net) with nonlinear approaches (Decision Tree and Random Forest) under a consistent out-of-sample evaluation framework, and we examine the best-performing model using permutation importance and PDP/ICE tools. Random Forest achieves the strongest out-of-sample predictive performance and reduces absolute errors relative to Elastic Net for most test observations, although diagnostics also reveal a small tail of extreme errors. Across model families, ai_iot_advantage_share emerges as the most stable predictor of reported AI/IoT success. Nonlinear diagnostics indicate a threshold-like transition in predicted success around the mid-range of advantage attribution and a saturation pattern at higher values. Readiness and performance-related variables are associated with higher predicted success, whereas higher barrier levels are associated with lower predicted success. The results position value realization as the most informative predictive signal in the dataset and provide an interpretable basis for enterprise-level screening and managerial reflection rather than causal inference.