Artificial Intelligence Adoption and Organizational Performance: The Role of Organizational Agility and Management Commitment in AI-Enabled Work Environments

Artificial intelligence (AI) has been increasingly incorporated into organizational functions to streamline processes and improve performance outcomes. However, prior research has primarily examined AI from a technological and operational perspective, with limited attention to the role of employees’ perceptions of AI in shaping organizational outcomes. This study develops and empirically tests a moderated mediation model examining the impact of perceived benefits of AI (PB-AI) on organizational performance (OGP), both directly and indirectly, through organizational agility (OAG), while assessing the moderating role of management commitment (MC). Data were collected from 381 managers in medium-sized enterprises in Saudi Arabia and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that perceived benefits of AI (PB-AI) significantly enhance organizational agility (OAG) (β = 0.400, p < 0.001) and organizational performance (OGP) (β = 0.303, p < 0.001). Organizational agility also positively influences performance (β = 0.163, p = 0.001) and partially mediates the relationship between PB-AI and OGP. However, the moderated mediation effect of management commitment was not supported. The findings highlight the role of employees’ perceptions of AI as a mechanism through which AI-related benefits are translated into organizational outcomes. The study contributes to the literature by positioning perceived benefits of AI as a key explanatory construct and by demonstrating the role of organizational agility in linking AI-related perceptions to performance outcomes. It also provides insights into the role of management commitment in AI-enabled organizational contexts.