Artificial Intelligence Governance and Organizational Readiness in Banking: Evidence from Albania

Artificial intelligence (AI) is increasingly transforming banking, yet responsible adoption depends not only on technical deployment but also on organizational readiness, governance capacity, monitoring practices, and the capacity to scale AI responsibly. This study examines AI adoption, governance readiness, maturity, perceived benefits, adoption barriers, and scaling intention in the Albanian banking system. Based on a cross-sectional survey of 85 professionals from 15 institutions, including all 12 banks operating in Albania and 3 additional financial institutions, the study applies the Technology–Organization–Environment framework together with principles of responsible AI governance. The analysis uses reliability and validity diagnostics, common-method diagnostics, robust OLS regressions, institution-clustered inference, bootstrap confidence intervals, PLS-SEM robustness analysis, and sensitivity checks. The findings show that AI adoption is visible but uneven: more than half of respondents reported active or pilot AI use, while integration, monitoring, and benefit measurement remain less developed. Data and Technology Readiness and Environmental/Regulatory Pressure were positively associated with Capability-Governance Readiness, which was positively associated with Perceived Benefits. Perceived Benefits were positively associated with Intention to Invest in or Scale AI, whereas Adoption Barriers showed no statistically significant association with scaling intention. The study provides exploratory evidence from a small banking system, indicating that responsible AI development requires the alignment of technological foundations, organizational capability, governance structures, monitoring routines, responsible-use orientation, and benefit-measurement practices.