The concept of changing electronic devices into intelligent beings with human-like cognitive capacities is referred to as artificial intelligence (AI). Aspects of human intelligence, such as learning, reasoning, problem solving, voice recognition, and planning, can be simulated by computer systems. AI applications are being developed to assist businesses and entrepreneurs in making decisions. The purpose of this research is to look into the prevalence of artificial intelligence applications at the organisational level in Kenya. The key notion of the technological-organizational environment is used in this theoretical model, which is based on how technological and environmental elements influence organisational decisions to adopt technological innovations (TOE). The study collected data from 193 senior executives responsible for information systems in private and public firms to evaluate the model, which is influenced by ten major factors. The data was examined using structural equation modelling (SEM). The findings show that technological compatibility, comparative advantage, technical complexity, technical capabilities, management capabilities, organisational readiness, government involvement, market uncertainty, and supplier partnerships all have a significant impact on the adoption of AI applications. Surprisingly, the study discovered no statistically significant link between firm size and AI usage. As a result, AI application implementation can help advance current research on TOE AI implementation.