Journal: IPSI Transactions on Internet Research

Artificial Intelligence Driven Digital Transformation
Mediating the Relationship Between
Artificial Intelligence Readiness
and Business Process Efficiency

Authors: Salam, Maimoona Radović-Marković, Mirjana
Farooq, Muhammad Shoaib
Marković, Dušan and Vučeković, Miloš


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Abstract

This study presents a novel account of artificial intelligence driven digital transformation (AIDT) in the proposed relationship between artificial intelligence readiness (AIR) and business process efficiency (BPE). Data gathered from 227 firms was analyzed with PLS-SEM approach for testing the proposed AIDT model. Results confirmed that the link between AIR and BPE is positive and significant. Furthermore, it is confirmed that AIDT significantly mediates the positive relationship between AIR and BPE. Further, discussion on tangible and intangible aspects of AIR offers deep AI related theoretical insights into the AIDT related concept of organizational resource-based view. Policymakers and AI practitioners can use the AIDT model as a driver for enhancing BPE.

Keywords

Artificial Intelligence, Digital Transformation, AI Readiness, AI-Driven Digital Transformation, Business Process Efficiency


Published in: IPSI Transaction on Internet Research (Volume: 22, Issue: 2)
Publisher: IPSI, Belgrade

Date of Publication: April 1, 2026

Open Access: CC-BY-NC-ND
DOI: 10.58245/ipsi.tir.2602.04

Pages: 32 - 41

ISSN: 1820 - 4503

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Salam, Maimoona

Maimoona Salam is an Assistant Professor at the University of Engineering and Technology, Lahore. Her research focuses on educational technology, artificial intelligence in learning, conversational AI, intelligent tutoring systems, and software engineering.
E-mail: maimoona.salam@uet.edu.pk, ORCID 0000-0001-7102-274X

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Radović-Marković, Mirjana

Mirjana Radović-Marković is a Full Professor and principal research fellow. Professor Radović-Marković is the author of 308 scientific works. Her most famous books are "Entrepreneurship and Work in Gig Economy" (2021), "Globalization and Entrepreneurship in Small Countries", (2019), then "Qualitative methods in economics", (2017), as well as the book "Women and entrepreneurship: female durability, persistence and intuition at work" (2013). The last one in the mentioned series was a bestseller in America in August 2014. The recent one book is Globalization and Entrepreneurship: Case of China, Japan and Bangladesh, Routledge, February 2025. She is a Fellow of The European Academy of Sciences and Arts (Salzburg), Academia Europaea (London), WAAS, USA and the National Academies of Sciences of Lithuania, Bangladesh, Zimbabwe, and Botswana.
E-mail: mirjana.radovic.markovic@bba.edu.rs, ORCID 0000-0003-2002-8732

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Farooq, Muhammad Shoaib

Muhammad Shoaib Farooq (corresponding author) is a faculty member at the University of Engineering and Technology, Lahore. With over a decade of academic and research experience, his expertise span entrepreneurship, business, management and corporate applications of artificial intelligence.
E-mail: sshoaibfarooq@uet.edu.pk, ORCID 0000-0003-3263-2646

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Marković, Dušan

Dušan Marković is a professor of applied studies at the Belgrade Business Academy, where he teaches in the study program of Information Systems and Technologies. His teaching areas include databases (basic and advanced), management information systems, business intelligence systems, as well as elective courses related to software projects and internet services.
Email: dusanbps@gmail.com, ORCID 0009-0009-5679-2813

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Vučeković, Miloš

Miloš Vučeković is currently employed at the American company FIS in Belgrade. His research interests include entrepreneurship, digital transformation, and business education. He has published more than twenty scientific papers.
E-mail: milosvu@gmail.com, ORCID 0009-0001-0420-8779

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Cite this article

Salam, Maimoona; Radović-Marković, Mirjana; Farooq, Muhammad Shoaib;
Marković, Dušan; and Vučeković, Miloš
"Artificial Intelligence Driven Digital Transformation Mediating the Relationship Between Artificial Intelligence Readiness and Business Process Efficiency",
IPSI Transactions on Internet Research, vol. 22(2), pp. 32-41, 2026, https://doi.org/10.58245/ipsi.tir.2602.04