The Impact of AI Applications on Smart Decision-Making in Smart Cities as Mediated by the Internet of Things and Smart Governance

Abstract

Plenteous research has been undertaken on the direct effects of artificial intelligence (AI) on smart decision-making. However, little attention has been paid to contextual factors such as the Internet of Things (IoT) and smart governance that mediate the relationship between AI and smart decision-making. This research investigates direct, mediating, and parallel-sequential multiple mediating interactions between AI, the IoT, smart governance, and smart decision-making. We used a self-structured survey to collect cross-sectional data from citizens in the Republic of Korea, and 516 responses were examined using SmartPLS structural equation modeling (PLS-SEM). A parallel-sequential multiple mediator framework is assessed using the Hayes Process Model with bootstrapping. Our results reveal a substantial and favorable multi-mediating effect from the IoT and smart governance on the relationship between AI applications and smart decision-making, as predicted. Previous scholars have investigated a few factors that influence decision-making, but our research contributes to the literature of applied and social sciences, including traditional decision theory, by examining the impact of multi-mediating factors on smart decision-making. This study presents both theoretical and practical implications for scholars and policymakers engaged in the development of smart cities. Additionally, this study provides recommendations for future research.

Keywords

• Artificial intelligence
• Internet of Things
• big data
• smart governance
• smart decision-making
• parallel-sequential multi-mediating effect