Determinants of artificial intelligence adoption in the financial services industry: Understanding employees’ perspectives

Abstract

This study examines the factors influencing AI adoption in Indonesia’s financial services sector, focusing on knowledge and awareness levels, perceived risks and benefits, self-confidence, and the moderating role of managerial support. Grounded in innovation diffusion theory (IDT), protection motivation theory (PMT), and self-determination theory (SDT), the study analyzes data from 489 employees using structural equation modeling with SmartPLS 4 software to test the hypotheses. The findings reveal that higher levels of knowledge and awareness, along with self-confidence, positively influence AI adoption intentions, while perceived risks and benefits exert a negative effect. Furthermore, managerial support moderates these relationships by enhancing the positive effects of knowledge and awareness levels and self-confidence, while mitigating the negative impact of perceived risks. These results emphasize the critical role of managerial support in promoting AI adoption and highlight the necessity of cultivating a supportive organizational culture and leadership to ensure successful AI integration.