A Study On The Perception Of Business Managers Towards

Artificial Intelligence

Burak Demir, [Link]@[Link]

Abstract

This study examines the perceptions and attitudes of business managers towards artificial intelligence

technologies. According to the results of the research, 63% of the participants believe that artificial intelligence

will reduce workload and save time, while only 5% think that artificial intelligence has strategic importance and

will increase employee productivity. While women and young employees are more prone to AI technologies, it

was found that high school graduates use this technology more actively. The opportunities that AI brings to the

business world include operational efficiency, improvement in customer satisfaction and faster decision-making

processes. However, managers need to show leadership and develop awareness and training programmes for the

adoption of artificial intelligence. The research indicates that such strategic approaches will increase the

effectiveness of the technology. However, the fact that only a small proportion of respondents are aware of the

long-term strategic contributions of AI indicates that there is a lack of information in this area. This may lead to

the technology being used only for short-term solutions. Managers need to better explain the strategic potential

of AI to employees and encourage the widespread use of this technology. The findings suggest that businesses

should develop a technology culture and adopt an approach that supports innovation in order to maximise the

benefits of AI applications. As a result, training, knowledge sharing and leadership play a vital role in facilitating

the integration of AI into business processes.

Keywords: Artificial Intelligence (AI), Business Managers, Digital Transformation, Technology Culture

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 Introduction

Artificial intelligence (AI) has become one of the most important factors in the digital transformation process of

businesses. AI applications such as big data analytics, automation, machine learning and natural language

processing bring new strategic advantages to businesses (Brynjolfsson & McAfee, 2017). However, the effective

use of AI in organisations is directly related to how managers perceive and evaluate this technology. Managers'

perceptions of AI can accelerate or slow down the integration of technology into business processes (Gartner,

2021). How managers define AI, in which areas they think it can be used, and how they see possible threats are

critical in shaping business strategies.

Impact of Artificial Intelligence on Business

The impact of AI on business is far-reaching. These include operational efficiency, customer experience

improvements, supply chain optimization, and innovations in strategic decision-making (Davenport & Kirby,

2016). One of the biggest advantages of artificial intelligence for businesses is its capacity to analyze large

amounts of data to make more accurate predictions about the future and assist managers in decision-making

processes (Sharda, Delen & Turban, 2020). However, the effective use of these technologies depends on

managers developing an open attitude towards these technologies (Huang & Rust, 2018).

Contribution to Strategic Decision Making Processes

AI contributes greatly to strategic decision-making processes. Data analysis and predictive models enable

managers to make more accurate and timely decisions. However, managers' trust in AI is an important factor

determining the integration of these technologies into decision-making processes (Kaplan & Haenlein, 2020).

Thanks to the data analytics provided by AI, managers can better analyze market trends and customer behavior,

which increases the accuracy of long-term strategic decisions (Brynjolfsson & McAfee, 2014).

Operational Efficiency and Automation

Another important contribution of AI is that it increases efficiency in the operational processes of businesses.

Especially in the manufacturing and service sectors, AI reduces costs and accelerates business processes through

automation. By replacing manual labor with automated systems, these technologies reduce error rates and

optimize processes (Davenport & Ronanki, 2018). However, business managers are evaluating this

transformation not only as an efficiency tool, but also in terms of its potential impact on the workforce (Frey &

Osborne, 2017).

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 Factors Shaping Business Managers' Perceptions of Artificial Intelligence

There are various factors that affect the perceptions of business managers towards AI. These factors include

factors such as the manager's past experiences, education level, proximity to technology and the sectoral

dynamics they are in. In addition, the current digital transformation strategies of the business also significantly

affect the managers' perspective on AI.

Education and Knowledge Level

One of the most important factors in managers' perceptions of AI is their level of knowledge and experience with

the technology. Managers who are familiar and knowledgeable with AI technologies can better understand the

opportunities offered by these technologies and implement them more easily (Mikalef, Pappas & Giannakos,

2020). As the level of education increases, managers' confidence in AI increases and the integration of these

technologies into business processes becomes easier (Gurbaxani & Dunkle, 2019).

General Attitude towards Technology and Innovation

Managers' general attitudes towards technology and innovation directly affect how they perceive AI. Managers

who are open to innovation and close to technology tend to see AI as an opportunity (Vial, 2019). However,

managers who shy away from technological changes or think that such changes will damage the organizational

structure may be more cautious towards AI (Bughin, Seong & Manyika, 2018).

Perception of Risk and Uncertainty

In addition to the innovations that AI brings to businesses, it also harbors some risks and uncertainties. In

particular, the fear that the labor force will be replaced by automation may cause a negative perception of AI in

some managers (Frey & Osborne, 2017). This risk perception may lead managers to be hesitant to integrate AI

into their businesses (Colson, 2019). However, as the level of education and knowledge increases, it is observed

that these uncertainties disappear and managers develop a more realistic perspective.

Sectoral Dynamics

The sector in which the business operates is also one of the important factors that shape the managers'

perspective on AI. Especially in sectors where digitalization is spreading rapidly, the adoption of AI can be faster

(Bughin, Seong & Manyika, 2018). While the use of AI in business processes has become widespread in sectors

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such as finance, health and technology, reservations towards these technologies persist in more traditional sectors

(Davenport & Kirby, 2016).

Barriers to the Adoption of Artificial Intelligence

There are a number of challenges that hinder the adoption of AI in businesses. These challenges include costs,

lack of technological infrastructure, data security concerns, and businesses' resistance to change (Ghobakhloo,

2020). SMEs in particular may hesitate to invest in AI technologies due to their high costs and implementation

challenges (Marr, 2019).

Cost and Investment Concerns

The installation and maintenance of AI systems can incur high costs, especially for small and medium-sized

enterprises. Managers may be uncertain about the return on these costs and postpone AI investments (Agrawal,

Gans & Goldfarb, 2018). In addition, technological infrastructure deficiencies and integration challenges of these

systems are among other factors that hinder the widespread use of AI (Zhang & Lu, 2021).

Human Resources and Skills Shortage

In order for AI to be used successfully in businesses, businesses need to have qualified human resources.

However, since many businesses do not have human resources specialized in AI, they have difficulties in

implementing these technologies (Manyika et al., 2017). These shortcomings in human resources and talent

management are one of the biggest obstacles to the widespread use of AI in businesses (Davenport & Kirby,

2016).

The perceptions of business managers towards artificial intelligence are critical for the integration and adoption

of these technologies into business processes. Factors such as education level, sectoral dynamics, perception of

risk and uncertainty shape managers' perception of AI. In this article, the factors affecting the perceptions of

business managers towards AI are examined and the barriers to the adoption of AI in enterprises are discussed.

As a result, the positive development of managers' perspectives on AI is vital for businesses to achieve success in

the digital transformation process.

Method

This research provides specific data to analyse the perceptions and attitudes of business employees in the Turkish

Republic of Northern Cyprus towards AI technology and their level of integration in the work environment. The

survey questions are taken from Kurtboğan and Ak's (2024) study on ‘Humanity's pi point: Artificial

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Intelligence’ by Kurtboğan and Ak (2024). The questionnaire consisting of 10 questions was sent to employees

and business owners in the Turkish Republic of Northern Cyprus. The survey was answered by 38 people. Also,

demographic questions consisted of gender, age, marital status, educational status and nationality.

Findings

Within the scope of the study, 63% of the participants showed that they believe that artificial intelligence will

reduce workload, facilitate business processes and save time. This indicates that employees see AI as an

important tool for operational improvement. However, 5% of the participants stated that AI has a strategic

importance for businesses and will positively affect employee productivity, indicating that the perception of the

long-term benefits of technology is weak. This difference shows that there are deficiencies and prejudices in the

technology adoption strategies of enterprises.

Figure1. Responses To The Survey Questions

When analysed demographically, it shows that perception differences vary significantly between certain groups.

Considering that 24 of the 38 people participating in the research were female and 14 were male, it is understood

that female employees showed a higher level of participation towards artificial intelligence. In addition, it is seen

that single individuals are more willing to integrate artificial intelligence into business processes at a rate of

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60%, while young employees in the 35-45 age group actively use technology. When evaluated in terms of

education level, it was determined that 24 high school and equivalent school graduates were able to adapt to AI-

supported business models faster. This finding shows that employees who associate technology with practical

solutions are more prone to artificial intelligence applications.

It also shows that there are deficiencies in the process of introducing and adopting artificial intelligence

technologies to employees more effectively. It is concluded that employees only focus on short-term operational

conveniences, but the long-term strategic and competitive contributions of AI are not sufficiently understood.

This situation reveals that enterprises should organise more comprehensive and targeted training programmes,

seminars and sample applications to increase employee awareness. In particular, awareness studies that

emphasise the innovative business models brought by artificial intelligence applications to businesses and their

effects on employee productivity can ensure a wider acceptance of this technology.

Figure2. Percentage Of The Answers Given To The Survey Questions

Another important result of the research is the role of managers within the organisation for employees to use

artificial intelligence more effectively. It can be stated that managers should introduce artificial intelligence not

only as a technology tool but also as an innovation that transforms business processes and that they should be

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practitioners. In addition, a supportive technology culture should be created in the workplace to positively

increase employees' interactions with AI. In this context, presenting artificial intelligence in a way to address the

concerns of employees and taking steps to increase its adoption can contribute to the long-term success of

businesses.

Discussion

This study is an important resource in terms of examining the perceptions and attitudes of artificial intelligence

technologies on company managers and employees and raising awareness in this field.

Awareness and training programmes are a priority need for more effective adoption of AI technologies in

businesses. Employees and managers should be supported with both theoretical and practical applications to

understand the strategic contributions of AI. Targeted training programmes can be developed, especially given

the differences in the attitudes of different demographic groups towards AI. The fact that high school graduates

and young employees adopt technology more rapidly highlights the need for strategies to enable this group of

individuals to take the lead in AI projects.

In addition, it is of great importance to create a supportive technology culture in organisations. Managers should

also take a leading role to alleviate employees' concerns and ensure that they see technology as an opportunity

rather than a threat. Managers' positive attitude towards artificial intelligence and promoting this technology as a

strategic innovation tool can accelerate the competitive advantage of businesses. We believe that positioning AI

not only as a tool that improves operational processes, but also as an element that supports long-term innovation

will help employees and managers to adopt this technology in a broader framework.

Conclusions

The use of artificial intelligence in businesses should not be limited to short-term operational advantages. The

long-term strategic effects of this technology should also be considered. Artificial intelligence can play an

important role in helping businesses achieve their sustainability goals, increase their innovation capacity and

gain an edge in market competition. Therefore, businesses and managers need to better understand the strategic

potential of AI and plan accordingly.

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The importance of training and awareness programmes should be emphasised in this process. As stated in the

study, managers with a high level of education have more confidence in artificial intelligence and can use this

technology more effectively. It is a critical need for businesses to offer targeted training programmes to improve

their employees' knowledge and skills related to AI. Sectoral differences also play a decisive role in AI

adaptation. Especially in sectors prone to technology, this adaptation takes place faster, while in traditional

sectors, resistance may be encountered. This situation reveals the need to develop sector-specific strategies. The

effects of artificial intelligence on the labour force should be addressed in terms of both opportunities and

potential risks. While providing advantages such as optimising business processes and reducing costs through

automation, the adaptation

of employees to this transformation and addressing workforce concerns should also be considered. It is important

that managers take the lead and adopt this technology not only as a tool but also as an innovation that transforms

the business culture.

As a result, education, knowledge sharing and leadership are the key elements for businesses to make the best

use of artificial intelligence applications. In this context, it is suggested that future studies should examine in

more detail the adoption of artificial intelligence in different sectors and its effects on employee attitudes and

business performance.

Acknowledgement

Ethics Statement: We declare that the rules specified in the ‘Directive on Scientific Research and Publication

Ethics of Higher Education Institutions’ were followed in this study and that none of the ‘Actions Contrary to

Scientific Research and Publication Ethics’ were performed. In addition, Demir and Kayıarslan declare that there

is no conflict of interest between them, that all authors contributed to the study, and that all responsibility for any

ethical violations belongs to the authors of the article.

Funding: This research has not received any funding.

Declaration of competing interests: There is no conflict of interest related to this submission.

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