Diffusion of AI Governance

Artificial intelligence (AI) has the potential to address social, economic, and environmental challenges. However, effective use of AI in organizations relies on the establishment of an AI governance framework. Although existing studies have discussed a variety of issues raised by AI-based systems and proposed AI governance frameworks to overcome those issues, organizations face challenges in adopting AI governance. Informed by innovation diffusion theory, this research evaluates the impact of internal and external influences on AI governance adoption between highly regulated and less regulated industries. We also assess the effect of adopting AI governance on organizational performance. Findings from this study will not only provide a nuanced understanding of the source of AI governance adoption, but also provide implications and guidelines for implementing AI governance in organizations.