Understanding the Adoption of Artificial Intelligence in Local Government Decision‐Making: The Influence of Institutional Pressures and Managerial Perceptions

ABSTRACT Artificial intelligence (AI) systems are increasingly being integrated into public sector decision‐making processes, with public managers relying on them to enhance their capabilities. As AI adoption becomes more widespread, discussions about its advantages and drawbacks intensify, alongside growing external expectations and pressures. However, the extent to which these pressures influence AI adoption remains unclear. Drawing on institutional theory, we conducted a randomised between‐subjects survey among 497 public managers in Belgian municipalities to examine how coercive, normative, and mimetic pressures influence their willingness to adopt AI in decision‐making. Results indicate that all three types of institutional pressures increase public managers' willingness to adopt AI, albeit to varying degrees. Moreover, the effects of coercive and normative pressures diminish when managers have more positive perceptions of AI. By linking institutional theory with individual‐level observations, the study contributes to understanding how institutional contexts shape AI adoption and the broader digital transformation of public administration.