Artificial Intelligence (AI) Adoption and Enterprise Risk Management (ERM): The Roles of Information Technology (IT) Infrastructure Flexibility, Technology Competence, and Organizational Culture in Ghana

Artificial Intelligence (AI) is transforming audit practice by redefining traditional frameworks and enabling the automation of data analysis, risk assessment, substantive testing, and continuous monitoring. This study investigates the effect of AI adoption by audit firms on enterprise risk management (ERM). It further assesses the mediating role of Information Technology (IT) infrastructure flexibility and the moderating roles of technology competencies and organizational culture in this relationship. Data were collected from 355 top managers in Ghana using a judgmental sampling technique based on predefined inclusion and exclusion criteria. The analysis was conducted using Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS 4.1.1.7. The findings indicate that AI adoption positively and significantly influences ERM and IT infrastructure flexibility. IT infrastructure flexibility also has a positive effect on ERM and partially mediates the relationship between AI adoption and ERM. In addition, technology competencies significantly strengthen the relationship between AI adoption and ERM. Organizational culture positively moderates the relationship between IT infrastructure flexibility and ERM. These insights underscore the need for strategic alignment between AI investments and organizational capabilities. The study contributes to the limited empirical literature on AI-driven ERM in emerging economies and offers insights for policymakers and regulators seeking to promote technology-aided ERM.