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Abstract

This study investigates how audit organizations leverage generative artificial intelligence technologies to enhance auditing capabilities through organizational adaptation mechanisms, examining the role of dynamic capabilities in facilitating successful AI adoption and performance improvements. A quantitative cross-sectional survey collected data from 312 audit professionals across diverse organizational contexts. Structural equation modeling examined relationships between dynamic capabilities, generative AI adoption, organizational adaptation mechanisms, and auditing performance with comprehensive measurement validation. Dynamic capabilities significantly influence generative AI adoption (β = 0.453, p < 0.001), which drives organizational adaptation mechanisms (β = 0.312, p < 0.001) that enhance auditing performance (β = 0.378, p < 0.001). Organizational adaptation mechanisms mediate 41.4% of the capability-performance relationship. The model explains 28.3% variance in AI adoption, 35.7% in adaptation mechanisms, and 31.2% in auditing performance. Audit organizations should prioritize developing sensing, seizing, and reconfiguring capabilities before AI investments, requiring comprehensive change management addressing structural, processual, and cultural dimensions simultaneously. AI-driven competitive advantages emerge through organizational transformation processes, with dynamic capabilities as antecedents and adaptation mechanisms as mediating processes.

Keywords

Generative artificial intelligence Dynamic capabilities Organizational adaptation Auditing performance Technology adoption

Article Details

Author Biographies

Deng Wei, Azman Hashim International Business School, Universiti Technologi Malaysia,Kuala Lumpur, Malaysia

Deng Wei is a Doctor of Business Administration (DBA) candidate at Azman Hashim International Business School, Universiti Teknologi Malaysia, Kuala Lumpur, Malaysia. Her research focuses on auditing, financial management, corporate strategy, and green auditing, with particular interest in the integration of emerging technologies and sustainable practices in audit processes.

Obed Rashdi Syed, Azman Hashim International Business School, Universiti Technologi Malaysia,Kuala LumpurMalaysia

Senior Lecturer at Azman Hashim International Business School, Universiti Teknologi Malaysia (UTM). An active researcher with publications on leadership, employee well-being, organizational sustainability, and academia-industry collaborations. Taught courses on leadership, HRM, organizational behavior, and business research at undergraduate and postgraduate levels, utilizing case-method and in-class collaborative learning approaches. Experienced in conducting workshops on research methodology.

Xiaoli Xu, Guizhou Electronic Commerce Vocational College, Guizhou, China

Xiaoli Xu is a lecturer in the Accounting Department of Guizhou Vocational College of E-commerce. She mainly teaches courses that combine digital intelligence technology with the field of finance. Her research focuses on financial management, and she is particularly interested in the integration of emerging technologies in the financial management process.

Hongli Sang, School of Economics and Management, Huizhou University, Guangdong, China

Hongli Sang, Ph.D. in Management. Her research interests include marketing management and brand management.

Jiang Wang, School of Economics and Management, Huizhou University, Guangdong, China

Jiang Wang, a Senior Financial Planner, Certified Public Accountant (CPA), Certified Tax Agent (CTA), and Accountant, currently serves as a faculty member at the School of Economics and Management of Huizhou University. He is deeply committed to theoretical and practical research in the fields of corporate financial management, tax planning, and auditing.

How to Cite
Wei, D., Rashdi Syed, O., Xu, X., Sang, H., & Wang, J. (2025). Generative AI-enabled intelligent auditing: an organizational adaptation mechanism study based on dynamic capability theory. Future Technology, 4(3), 159–170. Retrieved from https://fupubco.com/futech/article/view/385
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