Sateesh Gottumukkala
Artificial intelligence (AI) has emerged as a transformative force that is reshaping business practices, operational processes, and decision-making structures across diverse organisational settings. This paper provides a comprehensive literature review of the frameworks and theories that have been developed to explain the multifaceted process of AI adoption at the organisational level. The study synthesises insights from established models such as the Technology Acceptance Model, the Theory of Planned Behaviour, the Diffusion of Innovations Theory, the Unified Theory of Acceptance and Use of Technology, and the Technology Organisation Environment Framework, etc., in the context of AI. Each of these theories is examined in depth, with a focus on their core constructs, strengths, and limitations in the context of AI adoption. The paper also explores emerging theories specifically tailored to AI, such as the AI Governance Frameworks, the Risk Management Frameworks and Generative AI Adoption Models. The analysis reveals the interplay of technological, organisational, psychological, legal, social, environmental and ethical factors in shaping AI adoption decisions and highlights the importance of considering these factors holistically. The paper identifies existing literature gaps in the wake of Generative AI and Agentic AI and proposes future research directions. The study underscores the importance of developing more nuanced and context-specific theories to address the evolving nature of AI technologies and their impact on society. This research contributes to a deeper understanding of AI adoption and its implications for various stakeholders by bridging the gap between theory and practice