AI readiness and public governance in Africa: a system GMM and spatial regression analysis

Abstract

Purpose This study aims to explore the relationship between artificial intelligence (AI) readiness and public governance in Africa, examining how digital preparedness influences governance quality and infrastructure development across 53 countries between 2000 and 2024. Design/methodology/approach The analysis uses a Two-Step System Generalized Method of Moments estimator combined with spatial econometric techniques to capture both temporal dynamics and spatial spillovers, thereby highlighting the interconnectedness of African countries in governance and digital readiness. Findings The results reveal that the Frontier Technologies Readiness Index (FTRI) significantly and positively affects Control of Corruption and the Africa Infrastructure Development Index, suggesting that digital readiness fosters transparency and infrastructure development. Open Data and the ICT Regulatory Tracker are also found to enhance Government Effectiveness. However, the study cautions that the positive association between FTRI and Time to Start a Business indicates that early adoption of complex digital systems may create new bureaucratic hurdles. Originality/value By integrating AI readiness, governance indicators and spatial spillovers into a single framework, this study offers novel insights into the digital transformation of governance in Africa. It underscores the importance of harmonized regional digital policies and proactive regulatory frameworks to ensure that technological advancements translate into effective governance and sustainable development.