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

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.