Determinants of Adoption of Artificial Intelligence for Business Sustainability: A Study of Small Businesses in Jaffna

Abstract

This study aims to examine the Determinants of the adoption of Artificial Intelligence for Business Sustainability in small businesses in Jaffna. In that context, a deductive approach is employed by the researcher, and data from 72 small businesses in Jaffna. The purposive sampling was used by the researchers. In that context, the data were collected for a business that has potential for digital innovation. As the researcher employed a purposive sampling method, it is ensured that participants who could meaningfully respond to AIrelated questions were selected, given the region’s varied levels of technological awareness. The closed-ended, structured Likert Scale questionnaire was used by the researcher to collect the data. Awareness of AI adoption, Digital Skills, technological infrastructure, and perceived economic benefits are considered independent variables of the study, while business sustainability is considered a dependent variable of the study. The researcher used the SPSS package to analyze the data and the Kolmogorov– Smirnov test, reliability test, correlation analysis, Variance Inflation Test run by the researchers. Among the predictors, the perceived economic benefits (B = 0.395, p = 0.001) have a statistically positive relationship with business sustainability. Followed by Awareness of AI Adoption, which has a statistically positive relationship with business sustainability (B = 0.312, p = 0.004). Furthermore, Digital skills (B = 0.271, p = 0.015) and technological infrastructure (B = 0.219, p = 0.037) also have statistically significant positive effects, highlighting the importance of digital capacity. Additionally, perceived economic benefits have a statistically positive relationship with sustainable business practices.