Publication Details
Abstract
Artificial Intelligence (AI) is reshaping digital marketing through hyper-personalized customer engagement, optimized workflows, and sustainable growth. This empirical study identifies determinants of AI adoption in Delhi NCR's digital marketing SMEs—a critical innovation hub in India—using the (TOE) Technology–Organization–Environment framework model. We assess how technological factors (perceived advantages, cost, complexity, compatibility), organizational elements (workforce expertise, leadership support), and environmental forces (client expectations, policy incentives) drive adoption. Business outcomes (operational efficiency, financial growth) were evaluated using Structural Equation Modeling (Smart PLS 4) with data from 250 SMEs (June–August 2024). Results show perceived advantages, compatibility, skilled workforce, client demand, and policy incentives significantly explain 61% of adoption variance (R² = 0.61) and enhance performance. Medium-sized SMEs exhibit stronger advantages-to-adoption linkages than smaller firms.