Abstract

Artificial intelligence is one of the main technologies driving what is predicted to be the greatest revolution of human history. This study aims to examine the role of governmental authorities in the diffusion of AI-based innovations and cultural influences. South Korea has been leading innovation indexes the past years, making it of great interest to analyse the strategy and measures taken by the South Korean government to spread AI technology. This study focuses on the diffusion amongst small- and medium sized enterprises (SMEs) and the AI Voucher Program in specific. A qualitative interview study was performed, where the aim was to develop an understanding of opinions on the authorities’ work from the SMEs point of view. The study gave interesting insights on how an innovation strategy can spur diffusion of innovation in one aspect, and also hinder it in another aspect. It also highlights the big impact that norms of confucianistic cultures have on the social structures of the system in which the diffusion takes place. It was found that the cultural expressions in South Korea can contribute to a greater diffusion rate at later stages of the diffusion process, whilst having a tendency to impede the upcoming of radical innovations amongst SMEs.