Amirah Izzaty Roszelan

The advancement of artificial intelligence (AI) and its growing societal importance are reshaping decision-making processes and policy analysis roles. This study examines the readiness of manufacturing companies in Malaysia to embrace AI technology, considering its potential to enhance decision-making, productivity, quality control, job automation, and data analysis. Focusing on the Technology, Organization, and Environment (T-O-E) readiness framework, the research investigates the relationship between these dimensions and AI adoption readiness among manufacturing companies in Shah Alam, Selangor, Malaysia. AI adoption readiness serves as the dependent variable, while technological, organizational, and environmental readiness dimensions act as independent variables. The study applies the T-O-E framework to AI readiness and proposes a framework for assessing AI readiness at the manufacturing level. It identifies factors influencing readiness within the technological, organizational, and environmental dimensions, including relative advantage, compatibility, resources, competitive pressure, top management support, and government regulations. Through rigorous analysis, patterns, trends, and correlations are revealed, highlighting a significant link between the T-O-E readiness dimensions and AI adoption readiness. Notably, organizational readiness emerges as a key driver of AI adoption in Malaysian manufacturing companies. The results of this investigation have broad implications, offering suggestions to improve organizational preparedness and unlock AI’s potential benefits for businesses in the industrial sector. Additionally, the research lays the groundwork for further studies on AI readiness across various industries and international contexts. As AI becomes increasingly integrated into manufacturing processes, adaptive businesses gain competitive advantages on a global scale. These advantages include increased productivity, informed decision-making, streamlined quality control, improved customer satisfaction, and potential contributions to economic growth. The study concludes by recommending strategies to reinforce organizational readiness and emphasizes the need for future research to deepen understanding of AI adoption readiness in the manufacturing industry. The integration of AI technology offers benefits such as enhanced productivity, decision-making, quality control, and customer satisfaction, granting businesses a competitive edge in the digital landscape and increasing stakeholder interest.