<![CDATA[The integration of disruptive technology, especially Artificial Intelligence (AI), has pushed public administration towards smarter governance. However, local governments in Indonesia still face capacity and digital gaps in implementing digital transformation. Studies on organizational readiness for AI comprehensively impact digital service innovation in the local public sector, but they are still limited. This study aims to assess the level of AI Readiness (AIR) and Digital Public Service Innovation (DPSI) in Indonesian local governments, as well as empirically analyze the influence of AIR on DPSI. The study uses an explanatory quantitative design. Primary data were collected through structured questionnaires with a five-point Likert scale. The study population consists of local government officials handling data management, information technology, digital transformation, and public services. A total of 100 respondents were selected using purposive sampling. The descriptive analysis results show that both Artificial Intelligence Readiness and Digital Public Service Innovation are at a high level in local governments in Indonesia. Furthermore, the simple linear regression analysis confirms that Artificial Intelligence Readiness has a positive and statistically significant impact on Digital Public Service Innovation, indicating that the higher the organization's readiness to adopt AI, the higher the level of digital public service innovation produced. These findings provide empirical validation for the Resource-Based View (RBV) and Dynamic Capability Theory, with the sustainability of public sector innovation heavily relying on strengthening the organization's internal capabilities, including technology infrastructure, human resource competencies, strategic leadership, and data governance.]]>
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