The AI Leadership Readiness Transformation Framework for Enhancing Institutional Performance and Public Value Creation in the UAE Public Sector

Abstract

Artificial intelligence (AI) has become a strategic capability for transforming public-sector organizations; however, achieving meaningful AI outcomes requires more than technological adoption. It requires leadership capabilities that enable government institutions to strategically implement, govern, and sustain AI-driven transformation. This paper develops the AI Leadership Readiness Transformation Framework to explain how public-sector organizations can translate AI leadership capabilities into improved institutional performance and broader public value creation. Drawing on literature on AI readiness, digital leadership, responsible AI governance, institutional performance, and public value, the paper conceptualizes AI Leadership Readiness as a multidimensional leadership capability comprising AI strategic literacy, data-informed leadership, responsible AI governance orientation, and AI change leadership. The proposed framework positions AI Leadership Readiness as the foundational capability that enables Institutional Performance, reflected through operational effectiveness, decision-making effectiveness, service delivery improvement, innovation capability, and organizational responsiveness. Enhanced institutional performance subsequently contributes to Public Value Creation through citizen-centered services, public trust and legitimacy, transparency and accountability, social and policy outcomes, and public innovation and future readiness. The framework provides a public-sector perspective on AI transformation by moving beyond technology-centered approaches and emphasizing the role of leadership capability in achieving sustainable organizational and societal outcomes. The paper contributes to AI transformation research by introducing an integrated framework linking leadership readiness, institutional performance, and public value creation, while offering practical implications for government organizations, particularly within the UAE context, seeking to develop responsible and value-oriented AI transformation capabilities.