AI ADOPTION IN MULTINATIONAL CORPORATIONS: PSYCHOLOGICAL FACTORS SHAPING STRATEGIC CHOICES AND GLOBAL INFLUENCE

Abstract

The blinding pace of the Artificial Intelligence (AI) is changing the strategic processes and globalisations of multinational corporations (MNCs). Although other studies in the field have focused on technological preparedness and financial performance to a large extent, the psychological factors that affect the uptake of AI are largely unexplored. This paper discussed how strategic choices of adopting AI are influenced by major psychological variables like managerial thinking, risk tolerance, trust in the use of AI systems, and the attitude of leaders, and how the effect of these variables on the global impact of MNCs in Pakistan. A cross-sectional researched design was applied, which is quantitative and the data was collected with 250 managerial employees located in the major cities through the structured online questionnaire. Three hypotheses were tested using Structural Equation Modeling (SEM). The results have shown that psychological aspects played a significant role in the strategies of AI adoption, which positively impacted the global influence. Moreover, the impact of psychological factors on the global influence was direct, which explains the importance of managerial cognition, risk tolerance, trust, and innovative leadership in influencing the strategic results. The paper highlights the significance of mutual psychological preparation and technological investments in improving AI adoption and global competitiveness of MNCs. The presented findings provide theoretical backgrounds on the human aspect of AI strategy and practical consequences to those leaders who want to make AI projects compatible with sustainable international development.