Digital Transformation and AI Adoption in Government: Evaluating the Productivity Gains, Implementation Barriers, and Governance Risks
DOI:
https://doi.org/10.53819/81018102t4368Abstract
Despite the massive global investment in digital transformation and AI-driven public sector reforms, many governments continue to experience limited productivity improvements, disintegrated implementation, and growing governance risks. While digital platforms and AI tools are expected to enhance efficiency, transparency, and public trust, evidence shows persistent gaps between technological investment and realized performance outcomes, compounded by skills shortages, infrastructural deficits, regulatory weaknesses, and ethical concerns. This study evaluated the productivity gains, implementation barriers, and governance risks associated with digital transformation and artificial intelligence adoption in government institutions. The study adopted a desktop review research design grounded in a positivist research philosophy. An extensive review of peer-reviewed journal articles, policy briefs, institutional reports, and reputable governance and technology publications was conducted. Literature was systematically identified, screened, and analyzed based on relevance to digital transformation, e-governance, artificial intelligence adoption, public sector productivity, implementation barriers, and governance risks. Digital transformation and AI adoption are associated with productivity and efficiency gains in government, especially through automation, workflow optimization, and data-driven decision-making. However, these benefits are constrained by significant implementation barriers, including infrastructure limitations, human capacity deficits, organizational resistance, and fragmented institutional coordination. The study recommends that governments should pursue integrated and context-sensitive digital transformation strategies that align technological deployment with institutional reform, capacity building, and strengthened AI governance frameworks to ensure that productivity gains are sustainable, inclusive, and aligned with public values.
Keywords: Digital Transformation, Artificial Intelligence, E-Governance, Public Sector Productivity, Governance Risks, Government Institutions.
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