Abstract

This study investigates the key determinants influencing Artificial Intelligence (AI) adoption in Nigerian businesses, focusing on operational efficiency, workforce productivity, profitability, and competitive advantage. The aim is to assess how these factors affect firms' decisions to integrate AI technologies. A descriptive survey research design was employed, with data collected through a well-structured, close-ended questionnaire. A total of 385 firms in Benin City, Nigeria, across multiple sectors such as banking, manufacturing, and telecommunications participated in the study. The data were analyzed using descriptive statistics and multiple regression analysis to determine the relationships between the business determinants and AI adoption. The findings reveal that operational efficiency, workforce productivity, and competitive advantage significantly influence AI adoption, while profitability does not show a significant relationship with AI adoption in this context. Based on these results, it is recommended that Nigerian businesses focus on improving operational efficiency and workforce productivity to facilitate AI adoption. Additionally, the study suggests that policymakers should address barriers such as infrastructure limitations and high implementation costs to foster AI adoption across Nigerian firms.