Antecedents of Generative Ai Usage in Chinese Insurance Companies and its Impact on Performance: The Mediating Role of Exploitative and Exploratory Innovation

Abstract

Generative artificial intelligence (GEN-AI) may produce various types of material, such as music, writing, graphics, and synthetic data.  In order to investigate the determinants and outcomes of GEN-AI usage in the insurance industry, a research model was formulated by drawing on the technology-organization-environment (TOE) framework. Partial least squares structural equation modelling (PLS-SEM) is used to analyse survey data from 286 insurance companies in China. The empirical results reveal that AI ethics, anthropomorphism, technology competence, top management support, organizational readiness, mimetic pressures, and normative pressures significantly affect GEN-AI usage, but coercive pressures have no effect on GEN-AI usage, exploitative and exploratory innovation positively mediates between Generative AI usage and firm performance. This research also provides important practical guidance for insurance companies, governments, and companies developing GEN-AI.

Keywords: GEN-AI, Institutional theory, insurance company, Technology-organization-environment (TOE) framework