The Impact of Artificial Intelligence on Financial Performance in Saudi Fintech Firms: The Mediating Role of Entrepreneurial Orientation - A Path Analysis Approach (Acta Innovations)

Summary

• The study population comprises 96 fintech companies licensed in Saudi Arabia by the Saudi Arabian Monetary Authority.p.1
• Data collection was conducted electronically starting in August 2025 over a two-month period.p.4
• Path analysis indicates a direct effect size of 0.01 between artificial intelligence and financial performance.p.6
• The size effect of artificial intelligence on entrepreneurial orientation is 0.67, while the effect of entrepreneurial orientation on financial performance is 0.80.p.6
• The indirect mediated effect of artificial intelligence on financial performance is measured at 0.536.p.6
• The path model yielded a total effect value of 0.546 with a Chi-square value of 0.000 and 0 degrees of freedom.p.6
• Regression results show a p-value of 0.934 for the direct relationship between artificial intelligence and financial performance, rendering it statistically insignificant.p.7

Key insights

1. Artificial intelligence does not exert a direct statistically significant impact on the financial performance of Saudi fintech firms.p.1
2. Entrepreneurial orientation operates as a mediating mechanism enabling artificial intelligence to indirectly influence financial performance.p.1
3. The indirect effect of artificial intelligence on financial performance through entrepreneurial orientation is calculated as 0.536.p.6
4. Model predictors explain 64% of the variance in e2 and 44% of the variance in e1.p.6
5. Hypothesis H1 claiming a significant direct effect of AI on financial performance was rejected based on empirical findings.p.7
6. Hypothesis H4 confirming a significant mediating role for entrepreneurial orientation between AI and financial performance was accepted.p.8