The Moderating Influence of Institutional Capacity on the Acceptance of Artificial Intelligence (AI) Powered E-Government Services

Artificial intelligence (AI) has revolutionized the public sector. However, AI adoption in the public sector remains underexplored, especially the factors that induce citizens’ acceptance of AI-powered e-government services (AAIPEGS) for efficient and improved service delivery. Utilizing the UTAUT framework, the study examines the factors associated with the AAIPEGS in Ghana to illustrate a developing country’s perspective on AAIPEGS. We applied structural equation modeling using SmartPLS-4 to 478 valid responses collected via self-administered online questionnaires from a cross-section of Ghanaian society (e.g., teachers, students, public sector workers, and other members of society). The results indicate that performance expectancy, effort expectancy, facilitating conditions, and security and privacy (SP) are notable drivers of people’s AAIPEGS. Yet, social influence failed to stimulate the AAIPEGS. The government regulatory framework for AI drives the AAIPEGS, performance expectancy, effort expectancy, and SP of AI-powered e-government services. Furthermore, institutional capacity significantly moderates the effects of both effort expectancy and SP on the AAIPEGS. Findings indicate that an efficient regulatory framework and vibrant institutional capacity are vital components for improving public AAIPEGS. The study underscores the direct impact of the government regulatory framework and the moderating role of institutional capacity on AAIPEGS. This study suggests adequate regulatory mechanisms to guide the rollout of AI-driven public services. The institutional capacity of public sector agencies should be strengthened and continuously adjusted to adapt to the transformation of public services through AI-powered e-government. Theoretical and policy consequences for the advancement of AI-driven public services are thoroughly discussed.