AI Adoption, Digital Capability, and Sustainable Performance in Higher Educational Institutions of Southern Punjab, Pakistan

Abstract

Artificial intelligence (AI) is changing the structure of organizations, the knowledge process, and performance systems in various industries, including the higher education sector. There is a growing adoption of AI-based technologies in universities and other higher educational institutions (HEISs), which aim to improve teaching, research, administration, and strategic decision-making. Nevertheless, the efficiency of the AI adoption is not limited to technological implementation, yet the creation of the digital capabilities to support the intelligent systems usage by the institutions in the most efficient and sustainable way. The paper explores the connection between AI adoption and digital capability, and sustainable performance in institutions of higher education. It examines how institutional digital capability such as technological infrastructure, data management expertise, and digitally competent personnel has been used in advancing the efficient utilization of AI and leading to long-term academic, operational, and environmental sustainability. The paper uses the resource-based view and the perspective of digital transformation as a conceptualization of digital capability as a strategic organizational resource that may mediate or enhance the effect of adoption on institutional performance outcomes of AI. The research paper is relevant to the existing body of literature on digital transformation in education in that sustainable performance in higher education is not only achieved through technological investment, but also through the adoption of AI systems with institutional learning capacity, governance systems, and culture of innovation. The results provide information to policy-makers and academic leaders who wish to use AI technologies to develop sustainable and competitive systems of higher education.