Artificial Intelligence (AI) has emerged from its traditional domain of computer science research to be a management reality. This can be seen in the remarkable increase in the adoption of AI technology in organizations resulting in increased revenue, reduced costs and improved business efficiency [19]. Despite this trend, there are still many organizations that are facing the decision whether to adopt AI. Thus, to evaluate the adoption of AI at organizational-level, we draw on two-grounded theories:Technology-Organizations-Environment (TOE) framework and Diffusion of Innovation theory (DOI) to identify factors that influence the adoption of AI. Survey data collected from 208 large, mediumsized and small organizations in Australia is used to test the proposed framework. We offer a method of how examining AI over a set of organizations. Besides offering several important recommendations for AI adoption future directions for research in this area are also included in this paper.