This theoretical essay explores the adoption of artificial intelligence (AI) in organizations through the integrated lens of institutional theory (IT) and diffusion of innovation (DOI) theory. IT elucidates how coercive, normative, and mimetic pressures drive organizational conformity, while DOI categorizes adopters into innovators, followers, and traditionalists, emphasizing perceived innovation attributes. Key findings reveal that AI adoption is influenced by regulatory compliance, industry benchmarks, and competitive imitation, with varying adoption rates depending on organizational readiness and sectoral demands. The study identifies gaps in current research, particularly the lack of integration between macro-level institutional pressures and micro-level adoption behaviors.

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