The role of artificial intelligence on the public energy sector performance in the United Arab Emirates: the mediation role of organizational agility

This study investigates the dynamic interplay between artificial intelligence (AI), organizational agility, and organizational performance within the United Arab Emirates (UAE) public energy sector. With the rapid technological advancements and the increasing adoption of AI in various sectors, understanding its impact on organizational performance has become crucial. The primary aim of this research is to investigate how organizational agility mediates the relationship between AI and organizational performance in the UAE's public energy sector. The study uses a quantitative research methodology, where survey questionnaires were distributed among 245 managers of major public energy companies in the UAE. Key variables including AI (with a focus on customer relationship management and cost-efficient IS operations), organizational agility (comprising responsiveness and competency), and organizational performance (efficiency, effectiveness, and achievement of objectives) are measured. The survey data were analyzed using Partial Least Squares Structural Equation Modeling (PLSSEM) to validate the proposed hypotheses. The findings suggest that AI significantly enhances organizational performance directly and indirectly through the mediation of organizational agility. The study highlights that the responsiveness and competency components of organizational agility play a critical role in leveraging AI capabilities to enhance performance outcomes. These results provide valuable insights for policymakers and managers in the UAE public energy sector, indicating that fostering an agile organizational culture is essential in maximizing the benefits of AI. This research contributes to the existing literature by providing empirical evidence on the mediating role of organizational agility in the AI-organizational performance nexus, within the context of a vital sector in the UAE. It emphasizes on the importance of strategic agility and adaptive capabilities in the era of digital transformation, offering a novel perspective on the AI implementation discourse.