A Proposed Conceptual Framework of AI Leadership Readiness, Organizational Agility, and Institutional Performance in the UAE Public Sector

Abstract

Artificial intelligence (AI) has become a strategic priority for public-sector transformation, offering opportunities to enhance decision-making, service delivery, operational efficiency, and institutional innovation. However, achieving meaningful value from AI requires more than technological adoption; it requires leadership capabilities, responsible governance, and organizational adaptability. This paper proposes a conceptual framework that explains how AI Leadership Readiness contributes to Institutional Performance through the mediating role of Organizational Agility within the UAE public-sector context. Drawing upon Dynamic Capabilities Theory, the framework conceptualizes AI Leadership Readiness as a multidimensional leadership capability consisting of AI Strategic Literacy, Data-Informed Leadership, Responsible AI Governance Orientation, and AI Change Leadership. The study develops the framework through an integrative review of literature on AI transformation, digital leadership, organizational agility, dynamic capabilities, and public-sector performance. The proposed model positions AI Leadership Readiness as an antecedent capability that enables public organizations to develop adaptive capacity, while Organizational Agility serves as the mechanism through which leadership capabilities are translated into improved institutional outcomes. The framework contributes to existing AI transformation literature by shifting attention from technology-centred perspectives toward the leadership and organizational capabilities required for sustainable AI implementation. It also extends the application of Dynamic Capabilities Theory to the public-sector AI context by highlighting the importance of leadership readiness and agility in achieving public-value outcomes. The proposed framework provides a foundation for future empirical research and offers practical implications for UAE public-sector organizations seeking to strengthen AI-enabled transformation through leadership development, adaptive capabilities, and responsible AI governance.