ARTIFICIAL INTELLIGENCE READINESS AND ORGANIZATIONAL ADAPTABILITY IN POST-DIGITAL ECONOMIES: EVIDENCE FROM EMERGING AFRICAN MARKET: A CASE STUDY OF NIGERIA

Abstract

The rapid proliferation of artificial intelligence (AI) is transforming organizational structures, competitive dynamics, and strategic priorities across the global business landscape. However, existing scholarship on AI readiness and organizational adaptability is largely derived from advanced economies, with limited attention to the institutional realities and adaptive capacities of firms in emerging African markets. This study addresses this gap by examining AI readiness and organizational adaptability in Nigeria, Africa's largest economy by GDP and most populous nation. Drawing on Dynamic Capabilities Theory, the Technology–Organization–Environment (TOE) framework, and Institutional Theory, the study develops an integrated, multi-level framework for understanding AI readiness across technological infrastructure, human capital, organizational culture, regulatory environments, and macroeconomic conditions. Evidence was obtained through fieldwork involving Nigerian commercial banks, telecommunications firms, fast-moving consumer goods (FMCG) companies, and public sector agencies, complemented by industry reports, regulatory publications, and academic literature published between 2015 and 2026. Findings reveal uneven patterns of AI adoption. While large, internationally connected organizations are increasingly deploying AI in customer relationship management, credit-risk assessment, and operational analytics, most organizations, particularly SMEs remain constrained by inadequate infrastructure, talent shortages, and weak institutional support. Five factors consistently predict organizational adaptability: digital infrastructure adequacy, leadership AI literacy and strategic vision, the availability and retention of AI talent, regulatory clarity, and a culture of organizational learning. The study advances dynamic capabilities theory by conceptualizing AI readiness as a higher-order capability in resource-constrained contexts and proposes the construct of contextually adaptive AI readiness. It concludes by offering practical recommendations for policymakers, organizational leaders, and development partners pursuing inclusive and sustainable AI transformation in Nigeria and comparable African economies.