Artificial Intelligence Leadership Competencies and Organizational Transformation in the Ministry of Information, Communications and the Digital Economy, Kenya

Abstract

Artificial intelligence (AI) is rapidly redefining how public organizations operate, innovate, and deliver services. However, the extent to which AI leadership competencies shape organizational transformation in public institutions remains inadequately explored, particularly in emerging economies such as Kenya. This study examined the relationship between AI leadership competencies, specifically visionary leadership, digital literacy, and ethical governance and organizational transformation within the Ministry of Information, Communications and the Digital Economy (MICDE). Grounded in the Dynamic Capabilities Theory, the study employed an explanatory research design, integrating quantitative and qualitative methods to capture the multidimensional nature of leadership influence. Data were collected from 176 respondents, including directors, departmental heads, and ICT officers, selected through Yamane's (1967) sampling formula and stratified random sampling. Quantitative data were analyzed using multiple regression analysis, while qualitative data from interviews were thematically analyzed to corroborate statistical results. The findings revealed that AI leadership competencies collectively accounted for 61.3% (R² = 0.613) of the variance in organizational transformation. Visionary AI leadership had the strongest and most significant effect (β = 0.451, p < 0.001), followed by leaders' digital literacy (β = 0.328, p = 0.003) and ethical governance competencies (β = 0.267, p = 0.011). Qualitative results supported these findings, illustrating that leaders who demonstrate digital foresight, technological proficiency, and ethical stewardship drive innovation, adaptability, and improved service delivery. The study concludes that cultivating AI leadership competencies is pivotal for realizing digital transformation in Kenya's public sector. It recommends embedding AI leadership training in capacity development frameworks, strengthening ethical AI governance standards, and fostering inter-agency collaboration to accelerate the national digital transformation agenda.