Factors influencing use of Blockchain (BC) and Artificial Intelligence (AI) in Risk Management (RM) by listed companies in Kenya

Abstract

The fast-paced technological advancement has significantly changed the worldwide business operations, especially within risk management frameworks. Among these emerging technologies, BC and AI have increasingly gained attention for their capacity to enhance data integrity as well as prevention of fraud. Despite their global recognition, the use of BC and AI among NSE-listed firms in Kenya remains scarce, raising questions about the underlying organizational determinants. This study assessed the corporate determinants impacting the use of BC and AI technologies in risk management among the 62 NSE-listed companies. Pegged on the TOE Framework, TAM and TRA, the study adopted a quantitative explanatory research design. Primary data was gathered through Google Form questionnaires administered to 67 respondents across the target companies. Analysis of data was performed by descriptive and inferential statistics. The study established a moderate level of technology utilization (μ = 0.612) among the NSE-listed companies. Regression analysis indicated that Organizational Readiness (β = 0.560, p < 0.001) and Top Management Support (β = 0.290, p = 0.013) were statistically significant positive predictors of technology use. On the other hand, Organizational Culture had no significant impact (p = 0.627). This suggested that digital transformation in Kenya's capital markets is an intentional, top-down strategic mandate instead of a result of informal workplace dynamics. Moreover, a significant digital disparity was identified, with large firms in the financial and telecommunications sectors leading in adoption (μ = 0.81) compared to the manufacturing and agricultural sectors. The results guide corporate leaders, policy makers, and regulators in formulating effective strategies of digital risk management. The results also contribute to the scholarly understanding of technological embracing within emerging markets. The research recommended that the NSE and the CMA prioritize technical standardization and incentives to bridge the technological gap between early adopters and laggards. Keywords: Strategic management, artificial intelligence, blockchain, risk management, NSE-listed firms, digital transformation.