The demand for artificial intelligence (AI) has created a hypercompetitive marketplace wherein firms are racing to develop AI innovation. Faced with such competitive pressures, achieving AI innovation quickly is prioritized over pursuing it ethically. This has social implications. Though extant research indicates investing in different factors enhances AI innovation, it is unclear how they can be leveraged successfully. We address this gap using the absorptive capacity and culture literature to uncover the role of a culture of market responsiveness, integrity and execution on AI innovation. Hypotheses were tested on a sample of S&P 1500 firms. To mitigate common method bias, data was triangulated from Culture 500 (developed by MIT scholars and CultureX using natural language processing), Emerging Technology Observatory’s PARAT, and COMPUSTAT (comprehensive financial information on firms in North America). We find support for our hypotheses, i.e., a firm culture of market responsiveness has a positive effect; while firm culture of integrity has negative effect on AI innovation development; and that this relationship is weakened by a culture of execution. This study is a first step in advancing understanding of relevant antecedents, particularly firm culture, with social implications for developing AI innovation ethically in a rapidly evolving market.
