1.1. The Background of the Study
Artificial Intelligence, also well know by its acronym AI, has emerged as one of the has become one of the defining digital technologies of the Fourth Industrial Revolution, changing how organisations process information, make decisions, and deliver services. Advances in machine learning, natural language processing, computer vision, and generative AI have enabled organizations to automate standard tasks, analyse vast amounts of structured and unstructured data, and support intricate decision-making operations that were previously dependent on human expertise. The outcome is that AI is widely accepted not only as “another tecnological developent” but as major breakthrough on organisational performance which will affect the efficiency of organisations (Brynjolfsson & McAfee, 2017; Dwivedi et al., 2023).
The private sector has led the adoption of AI to improve productivity, customer experience, and business intelligence, while governments are also progressively investing in AI to modernise public administration and respond to growing public demands for more efficient, transparent, and citizen-centred public services. National governments, regional authorities, and local administrations have begun integrating AI into a wide range of administrative functions, including document management, public service delivery, resource allocation, urban planning, predictive maintenance, fraud detection, and citizen engagement. These developments demonstrate a more extensive transition from conventional e-government initiatives towards intelligent public administration, where AI supports not only the digitisation of existing procedures but also the redesign of organisational processes and public value creation (Mergel et al., 2019; Wirtz et al., 2019).
International organisations have also encouraged the use of AI in public administration. The OECD and the European Commission view AI as an important part of digital transformation, highlighting its potential to improve administrative efficiency, support evidence-based policymaking, and enhance public service delivery (OECD, 2025). At the same time, public organisations face stricter legal and ethical requirements than the private sector. AI systems must comply with national and European legislation, including the General Data Protection Regulation (GDPR) when personal data are processed, while ensuring transparency, accountability, and public trust (Belias et al., 2021).
Among public organisations, local governments occupy a particularly important position in the digital transformation agenda. Municipalities are the level of administration closest to citizens and deliver critical services such as urban planning, environmental management, licensing, financial administration, social care, waste management, and citizen support (Mantas et al., 2025). These functions generate large volumes of administrative data and involve many repetitive, information-intensive processes that can benefit from AI-enabled automation and decision support.
However, introducing AI into municipal organisations extends far beyond the acquisition of new technologies. Digital transformation requires organisations to redesign workflows, develop new competencies, establish appropriate governance mechanisms, and encourage organisational cultures that encourage innovation and persistent learning. Nonetheless, technological investments on public organisations do not always bring efficiency, instead they lead often on limited improvements, due of the fact that public organisations have complicated frameworks, bureaucracy, lack of resources andother constrains (Mantas et al., 2026). Therefore, the success of AI initiatives on the public sector is subject mostly of organisational preparedness and the employees’ and the managers’ openness to adapt the AI on everyday operations.
Employees represent one of the key determinants of successful AI implementation. Many traditional information systems that primarily supported administrative effectiveness, contemporary AI applications increasingly assist—or even perform—tasks including judgement, prediction, recommendation, and decision support (Mantas et al., 2025). This evolution fundamentally changes employees’ relationships with technology. Municipal employees are expected not only to operate AI-enabled systems as well as to interpret AI-generated outputs, evaluate algorithmic recommendations, and integrate them within administrative decision-making while continuing job accountability. As a result, employees’ perceptions, attitudes, and behavioural intentions become central to the successful adoption and effective use of AI within local government.
Existing research demonstrates that employees’ acceptance of emerging technologies depends on a complicated interaction among technological characteristics, organisational conditions, and individual psychosocial factors. Employees are generally more willing to adopt AI when they see it as useful, easy to use, and capable of improving work performance. Belias et al (2021) along with Mantas et al (2026) have expressed concerns that there are factors which discourage the use of AI from employees, but also from managers, such as algorithm transparency, the loss of job autonomy, lack of support from the upper management and limited computer literacy, along with the greatest fear which is the job losses due of the use of AI. Understanding the above mentnioned perceptions are particularly important in public organisations, where successful technological innovation necessitates cooperation between organisational leadership and employees while preserving high standards of accountability, fairness, and public trust.
The Greek public sector provides a particularly appropriate context for investigating these issues. During the last decade, Greece has accelerated its digital transformation through considerable investments in e-government services, interoperable electronic platforms, and public sector modernisation. More recently, national strategies have increasingly recognised AI as a strategic priority for upgrading public administration efficiency and upgrading public service delivery. Nevertheless, although technical infrastructure has continued to improve, considerably less is known about whether public employees themselves are prepared to adopt AI as part of their daily job activities. This question is especially relevant for local government, where municipalities differ substantially in digital maturity, available resources, organisational capabilities, and workforce readiness. Understanding the factors that shape municipal employees’ acceptance of AI; hence it constitutes an important step toward supporting successful AI implementation and achieving the wider goals of digital transformation within Greek public administration.
Despite the rapid expansion of AI applications across the public sector, understanding the factors that determine successful AI adoption continues an continuing research challenge. At this point there is a number of recent studies which argue that the implementation of AI must not rely only on technological innovation although it must be regarded as a multidimensional organisational transformation involving changes in governance, work practices, employee capabilities, leadership, and organizational culture (Dwivedi et al., 2023; European Commission, 2024; OECD, 2024; Mikalef et al., 2023). As governments increasingly deploy AI to improve administrative effectiveness, evidence-based policymaking, and citizen service delivery, research has shif3333ted from investigating whether AI should be adopted to examining the organisational, technological, and human conditions that enable successful implementation.
Technology acceptance theories remain the dominant theoretical perspective for explaining individuals’ willingness to adopt emerging technologies. The Technology Acceptance Model (TAM) (Davis, 1989) introduced perceived usefulness and perceived ease of use as the principal determinants of behavioural intention, while the Unified Theory of Acceptance and Use of Technology (UTAUT) expanded this perspective through incorporating performance expectancy, effort expectancy, social influence, and assisting conditions (Venkatesh et al., 2003). n systems (Dwivedi et al., 2023; Mikalef et al., 2023; European Commission, 2024).
Recent evidence from the European Commission demonstrates that organisational capabilities, governance structures, AI competencies, and institutional support strongly influence AI adoption among public managers across European countries. Reports coming from international organisations such as OECD (2024) and the European Commission (2024) argue that a the successful implication of AI relies on trustworthy governance, effective human resource management, a culture of ownership among the employees and their supervisors and robust institutional structures instead than technological capability.
Another important development concerns the rising recognition that organisational readiness constitutes a prerequisite for successful AI implementation. Although earlier studies mainly examined individual technology acceptance, recent research shows that organisational capabilities are key for moving AI initiatives from experimental pilots to routine operational use. Organisational readiness includes the leadership, infrastructure, governance, skills, culture, and change management capabilities needed for successful AI integration (Jöhnk et al., 2021; Mikalef et al., 2023). Consistent with Weiner’s (2009) theory of organisational readiness, successful digital transformation depends on employees’ joint devotion to change and their confidence that organisational resources and capabilities are sufficient to support implementation, which is very important on digital transformation of organisations. More recent empirical evidence indicates that variables such as leadership commitment, organizational learning, and AI governance are some of the success factors which will determine AI readiness on public sector organisations (European Commission, 2024; Madan & Ashok, 2024; OECD, 2024).
Employees themselves have become one of the most key determinants of AI adoption. AI technologies increasingly collaborate with employees in performing analytical and decision-support activities, requiring new competencies, persistent learning, and confidence in interacting with intelligent systems. Digital self-efficacy and personal innovativeness which represent important antecedents of AI acceptance because employees with greater confidence in their digital abilities generally display lower technological anxiety, stronger behavioural intentions, and greater readiness to experiment with new technologies (Bandura, 1997; Agarwal & Prasad, 1998). Recent studies additionally demonstrate that organisations achieving higher levels of AI maturity invest extensively in workforce upskilling (the strategic process of equipping the workforce with advanced competencies to meet developing technological requirements and industry standards (Viswan, 2026), AI literacy, continuous vocational development, and organisational learning, recognising employees as strategic enablers of digital transformation instead than passive technology users (OECD, 2024; Mikalef et al., 2023).
A number of researches, such as Dwivedi et al., (2023), European Commission (2024) and OECD, (2024) has identified several barriers that may inhibit AI adoption. Employees frequently voice worries about algorithm transparency, job autonomy, ethical responsibility, surveillance, privacy, and the possible effects of AI on existing job roles. Recent research also shows that unclear governance, limited organisational guidance, insufficient training, and weak policies for responsible AI use can reduce employees’ confidence and willingness to use AI . These results show that organisational support and governance mechanisms influence AI acceptance as strongly as technological characteristics themselves while evidence from OECD member countries shows that many public organisations have moved beyond small AI pilot projects. On the other hand AI implementation is still restricted from low levels of employees readiness, the lack of leadership commitment to the changes needed to develop AI solutions in an organisation and other managerial factors rather than solely technical barriers (OECD, 2024; European Commission, 2024).
Despite the growing body of research on AI adoption, several gaps remain. Much of the existing evidence comes from the private sector, healthcare, financial services, or studies of citizens’ acceptance of AI. Far less attention has been given to public employees, even though they are the ones expected to use AI in their everyday administrative work (Jonathan et al., 2025). In addition, technology acceptance, organisational readiness, and resistance to organisational change are often examined separately, despite growing evidence that these factors interact during digital transformation (Kuberkar & Singhal, 2020). Third, there is the issue that there is limited research from similar researches, especially from South Europe and countries like Greece (Mantas et al, 2026). A final point is despite of the fact that Greece has managed to become one of the key players of digital transformation in EU and of the increase used of AI on its public sector, still there is not any empirical evidence regarding municipal employees regarding their perceptions and the level of readiness for the use of AI in their job (Mantas et al, 2026). Dealing with these gaps contributes both theoretically and practically by delivering a more comprehensive understanding of the technological, organisational, and psychosocial factors that shape AI adoption within local government (Plimakis et al, 2024; Mantas et al, 2025; Mantas et al, 2026; Plimakis & Mantas, 2026).
Accordingly, this study develops an integrated conceptual framework that combines UTAUT, organisational readiness theory, and AI-specific organisational and individual factors to explain municipal employees’ intention to adopt AI. By jointly examining technology acceptance, organisational readiness, digital self-efficacy, personal innovativeness, resistance to change, and AI-related job insecurity, the proposed framework seeks to deliver a more comprehensive explanation of AI adoption than models focusing exclusively on technological determinants.
1.2. Development of the Conceptual Framework
The literature reviewed above indicates that no individual theoretical perspective is sufficient to explain employees’ adoption of AI within public sector organisations. Technology acceptance theories explain employees’ behavioural intention well, but they do not fully account for the organisational context and AI-specific challenges that influence the adoption of these technologies in everyday work (Schwaerzler et al., 2024). Similarly, organisational readiness theories explain an organisation’s capacity to implement change but provide limited insight into how employees evaluate AI as an emerging technology, while more recent research has provided a better glance in AI, where its sucessful implemantion is a combination of organisationl and technological factors, but also of how the individual employee regards the usefulness of AI within the organisation that he/she she works (Dwivedi et al., 2023; Mikalef et al., 2023).
This study therefore develops an integrated conceptual framework that combines the Unified Theory of Acceptance and Use of Technology (UTAUT) (Venkatesh et al., 2003), Organizational Readiness for Change Theory (Weiner, 2009), and recent AI adoption literature. This integrated approach embodies the multidimensional nature of AI implementation within municipalities, where the technological characteristics, organisational capabilities, employee competencies, and psychological perceptions simultaneously influence behavioural intention. Rather than viewing AI adoption as solely an individual decision, the proposed framework recognises that employees operate within organisational environments that either facilitate or constrain successful digital transformation.
UTAUT provides the principal conceptual basis for explaining employees’ behavioural intention to use AI. The model proposes that behavioural intention is mainly influenced by performance expectancy, effort expectancy, social influence, and assisting conditions (Venkatesh et al., 2003). These constructs have regularly demonstrated strong explanatory power through multiple technological contexts and remain among the most widely validated predictors of technology acceptance. Nevertheless, recent studies suggest that AI differs essentially from previous generations of information systems because employees increasingly collaborate with intelligent systems able of generating recommendations, predictions, and autonomous outputs. AI adoption appears to depend on more than technology-related factors alone. Organisational and psychosocial factors also need to be considered to better understand employees’ willingness to adopt AI (Dwivedi et al., 2023; Mikalef et al., 2023).
Furthermore Organizational Readiness for Change Theory supplies the organisational perspective supporting this research. According to Weiner (2009), successful organisational transformation depends on employees’ common commitment to change and their collective confidence that sufficient organisational resources, leadership support, and institutional capabilities exist to implement change effectively, while Maden & Ashok (2024) have mentioned similar factors along with digital infrastructure and an organisational culture which fosters the changes needed to adopt AI within the organisation. These organisational factors not only enable technological implementation but also determine employees’ confidence in the organisation’s ability to successfully deploy AI.
Beyond these recognized theoretical perspectives, recent AI literature identifies several individual characteristics and AI-specific concerns that influence behavioural intention (Han et al, 2025), such as digital self-efficacy — which stands for the employees’ ability to successfully use information technology (Mikalef et al, 2023) along with the employees’ readiness to use those new technologies and to cope with the challenges that may come up. Those two constructs, according to Mikalef et al (2023) are assocaited with high levels of AI acceptance and with the intention to adopt AI. However, it is important to note that there are concerns regarding job insecurity and resistance to organisational change may discourage AI adoption in spite of favourable technological and organisational conditions. The wider use of AI has also raised concerns about job autonomy, changing roles, and possible job displacement, all of which can influence employees’ willingness to adopt the technology (Dwivedi et al., 2023).
Based on these conceptual foundations, this research proposes an integrated conceptual model consisting of ten hypothesised relationships. Performance expectancy, effort expectancy, social influence, facilitating conditions, digital self-efficacy, personal innovativeness, organisational readiness, job insecurity, and opposition to change are proposed as direct antecedents of employees’ intention to adopt AI. In addition, the organisational working environment is hypothesised to positively influence organisational readiness by creating conditions that facilitate organisational change and digital transformation. Collectively, these relationships offer a thorough explanation of how technological perceptions, organisational capabilities, and individual attitudes jointly shape AI adoption among municipal employees.
Figure 1 illustrates the proposed conceptual framework. The model recognises that successful AI implementation within local government goes beyond technological functionality and depends on the interaction between organisational readiness, employee perceptions, and AI-specific concerns. Through integrating established technology acceptance theory with organisational readiness and contemporary AI adoption research, the framework intends to deliver a more comprehensive understanding of municipal employees’ acceptance of AI while tackling several gaps identified in the existing literature. The following section develops the research hypotheses derived from this conceptual framework.
1.3. Research Hypotheses
Building upon the proposed conceptual framework, this study develops ten hypotheses explaining municipal employees’ intention to adopt AI. Consistent with UTAUT, employees are more likely to accept AI when they view it as useful, easy to use, supported by colleagues and management, and facilitated by adequate organisational resources (Davis, 1989; Venkatesh et al., 2003). Recent AI studies additionally demonstrate that behavioural intention is influenced by organisational capabilities, employee competencies, and governance mechanisms (Dwivedi et al., 2023; European Commission, 2024; OECD, 2024). Accordingly, the following hypotheses are proposed:
H1: Performance expectancy positively influences employees’ intention to adopt AI.
H2: Effort expectancy positively influences employees’ intention to adopt AI.
H3: Social influence positively influences employees’ intention to adopt AI.
H4: Facilitating conditions positively influence employees’ intention to adopt AI.
Employees’ personal characteristics additionally influence AI adoption. Employees with higher digital self-efficacy and stronger personal innovativeness are generally more willing to experiment with new technologies and show increased behavioural intentions to use AI (Bandura, 1997; Agarwal & Prasad, 1998; Mikalef et al., 2023). Concerns regarding job insecurity and resistance to organisational change may discourage AI adoption, chiefly within public organisations undergoing digital transformation (Dwivedi et al., 2023; European Commission, 2024).
H5: Digital self-efficacy positively influences employees’ intention to adopt AI.
H6: Personal innovativeness positively influences employees’ intention to adopt AI.
H7: Organisational readiness positively influences employees’ intention to adopt AI.
H8: Job insecurity negatively influences employees’ intention to adopt AI.
H9: Resistance to change negatively influences employees’ intention to adopt AI.
Finally, organisational readiness is determined by the wider organisational environment. Supportive leadership, collaboration, communication, digital culture, and learning opportunities create favourable conditions for AI implementation and organisational change (Weiner, 2009; OECD, 2024; European Commission, 2024).
H10: The working environment positively influences organisational readiness.