Influence of Artificial Intelligence on the Performance of Ict Firms in Nairobi, Kenya

Abstract

The study was to ascertain the influence of artificial intelligence on the performance of ICT firms in Nairobi Kenya. The study based its case on operational efficiency competitiveness and innovation as well as problems and opportunities. The study aimed to answer how has AI affected the overall organizational performance of ICT firms in Nairobi. Thus, its purpose was to find out how the integration of artificial intelligence affected innovation, competitiveness, and business returns. Via survey questionnaires and interviews carried out amongst the management and employees of 143 ICT firms, the study determined that there was a fairly positive reception towards AI and especially its potential in the improvement of functionality and decision-making throughout the various fields of operation. The study analysis showed that the Adoption of AI has positively impacted operation cost, output, and even service delivery where new products and services were developed. However, the study noticed some difficulties in implementing the benefits such as being expensive, needing skilled people, and some privacy issues regarding people’s data. Therefore, regression analysis indicated that there is a positive correlation between AI usage and organizational performance, but such usage should be managed to avoid the negative impacts of AI. In general, findings showed that ICT firms in Nairobi that adopted AI technologies witnessed improvement in operation output and business competitiveness. The study emphasizes the need to make a continuing and sizable commitment to training and the development of policies that will enhance the attainment of the favorable impacts of AI. These insights proved useful as a starting point for extending the analysis of the impact of new trends in molecular structures of the ICT sector and its potential consequences for the future forms of business practice resulting from the use of Artificial Intelligence.