AI-Driven Business Model Innovation: The Impact of AI Integration Platform as a Service (AIPaaS) in the Financial Service Industry in Johannesburg, South Africa

Abstract

This study explores the adoption of Artificial Intelligence Platform as a Service (AIPaaS) in Johannesburg’s financial services industry, with a focus on its impact on business model innovation (BMI) and organisational efficiency. Although Johannesburg is South Africa’s financial hub, adoption remains inconsistent due to regulatory uncertainty, legacy systems, and institutional resistance. Framed within Technopreneurship theory and supported by the Unified Theory of Acceptance and Use of Technology (UTAUT), Corporate Entrepreneurship, and Business Model Innovation frameworks, the research offers an integrated lens on emerging technology adoption in complex organisational environments. A quantitative methodology was applied using structured surveys via Qualtrics, targeting compliance officers, decision-makers, and data professionals. While initial factor analysis suggested strong convergence, constructs were analysed independently to preserve theoretical integrity and allow for more precise interpretation—particularly relevant given the novelty of the topic. Findings highlight perceptions of AIPaaS and innovation dynamics as key predictors of both BMI and organisational performance. Barriers such as regulatory complexity, data governance concerns, and outdated infrastructure emerged as both constraints and catalysts for technopreneurial opportunity. The study concludes with targeted recommendations aimed at strengthening innovation- enabling environments, addressing systemic barriers, and supporting cross-sector collaboration to enhance AIPaaS uptake in Johannesburg’s financial ecosystem.