Digital Competence as a Predictor of AI Readiness in Public Sector Organizations: Evidence from Indonesian Civil Servants

Abstract

The growing use of artificial intelligence (AI) in government institutions requires public employees to possess competencies that enable them to work effectively with emerging digital technologies. Digital competence is therefore increasingly relevant to the development of an AI-ready public workforce. This study examines whether digital competence influences AI readiness among civil servants at the Regional Office of the Ministry of Law of West Java, Indonesia. A quantitative approach was applied using a census method involving 131 civil servants. Digital competence was operationalized through the five competency areas of DigComp 2.2, while AI readiness was represented by AI Knowledge and Literacy, AI Capability, and Responsible AI Orientation. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that digital competence has a positive and statistically significant effect on AI readiness (β = 0.841, t = 33.880, p < 0.001). The model explains 70.8% of the variance in AI readiness (R² = 0.708), while the effect size indicates a large contribution of digital competence to AI readiness (f² = 2.423). The predictive assessment also produced a positive Q²predict value of 0.704 for AI readiness. These findings indicate that digital competence represents an important individual capability in preparing civil servants to understand, use, and respond appropriately to AI technologies in the workplace. The study highlights the need for public organizations to strengthen digital competency development as part of broader efforts to establish an AI-ready workforce.