The Role of Artificial Intelligence on the Public Energy Sector Performance in the United Arab Emirates: The Mediation Role of Organizational Agility

Abstract

Purpose: This paper presents an in-depth analysis of the interaction between Artificial Intelligence (AI), organizational agility, and performance within the UAE's public energy sector. It explores the transformative role of AI in this context and the critical importance of organizational agility in determining outcomes in the energy field. Design/methodology/data analysis: The methodology employed in this study is a cross-sectional survey design, with data collected from 245 managers across various public energy companies in the UAE. The survey instrument measured variables pertaining to AI, such as Customer Relationship Management and Cost-efficient IS Operations, and facets of organizational agility, including Responsiveness and Competency, as well as overall Organizational Performance. Findings: The study's findings reveal a significant direct impact of AI on organizational performance, which is further enhanced by the presence of organizational agility. The data indicates that AI's integration within Customer Relationship Management and Cost-efficient IS Operations positively affects performance. Additionally, organizational agility through its components of Responsiveness and Competency serves as a significant intermediary, amplifying the influence of AI on performance. Originality/value: The research is grounded in the Process Theory of Change, the Diffusion of AI Theory, and the Resource-Based View Theory, providing a solid theoretical base for its exploration. It offers a nuanced understanding of the combined impact of AI and organizational agility on the public energy sector's performance. Practical implications: The paper concludes with a conceptual framework that encapsulates these relationships, providing stakeholders with a comprehensive view of the interdependencies between AI, agility, and performance. It stresses the imperative for a strategic embrace of AI and organizational agility to foster resilience, adaptability, and sustainable advancement in the UAE's public energy sector. The insights from this paper guide future strategic orientations, emphasizing the integration of technological innovation with agile organizational practices as a pathway to enhanced performance and sectoral leadership.