Thesis:
Senior management perception of artificial inteligence adoption in investment decision making by commercial banks in Nairobi county, Kenya

Abstract

This study aimed to assess senior management perceptions of artificial intelligence (AI) adoption in investment decision-making among commercial banks in Nairobi County, Kenya. Guided by the Technology Acceptance Model (TAM), the research sought to understand factors influencing AI integration, including perceived usefulness and ease of use. The primary objective was to identify the benefits, challenges, and readiness levels of banks’ senior management towards adopting AI technologies in their investment processes.The study adopted a mixed-methods research design, combining quantitative surveys and qualitative in-depth interviews. The target population comprised senior managers involved in strategic decision-making within commercial banks in Nairobi. A sample size of 30 senior managers was selected through stratified random sampling to ensure representation across various bank sizes and types. Data collection instruments included structured questionnaires for the quantitative phase and semi-structured interview guides for qualitative insights. The questionnaires measured perceptions of AI’s usefulness, ease of use, perceived risks, and organizational readiness, while interviews explored deeper attitudes, concerns, and suggestions for AI integration.Data analysis involved descriptive statistics and inferential tests such as correlation analysis to examine relationships between variables in the quantitative phase. Qualitative data were analyzed thematically to identify common perceptions, barriers, and facilitators related to AI adoption. The findings were presented using tables, charts, and narrative descriptions to elucidate senior management’s perceptions comprehensively.Prior to the main data collection, a pilot study was conducted with 15 senior managers from a different but comparable banking institution to test the clarity, relevance, and reliability of the instruments. The pilot helped refine questions and ensured the validity of the data collection process.The results indicated a generally positive perception of AI’s potential to improve investment decision-making, emphasizing benefits such as increased accuracy, efficiency, and real-time data processing. However, significant barriers included high implementation costs, resistance to change, lack of technical expertise, data security concerns, and regulatory uncertainties. The study concluded that despite cautious optimism, banks need targeted strategies to overcome these challenges to fully leverage AI’s transformative potential.This research contributes to understanding the perceptions influencing AI adoption in Nairobi’s banking sector and offers practical recommendations for policymakers and industry leaders to facilitate smoother integration.

Cite this Publication
Mucembi, M. N. (2025). Senior management perception of artificial inteligence adoption in investment decision making by commercial banks in Nairobi county, Kenya. Mount Kenya University. https://erepository.mku.ac.ke/handle/123456789/7567

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Mount Kenya University