ARTIFICIAL INTELLIGENCE INTEGRATION AND ITS ROLE IN DRIVING DIGITAL TRANSFORMATION ACROSS GLOBAL INDUSTRIES

Artificial intelligence is reshaping digital transformation worldwide, yet fragile economies like Iraq face unique challenges in capturing its benefits. This study analyzed Iraq between 2020 and 2024 to explain how infrastructure, human capacity, and governance shaped service efficiency, transparency, productivity, and inclusion. A descriptive and analytical design was applied, using 105 secondary data points from international and national sources, with correlation and regression techniques validating results. Findings show service processing times fell from 20 to 10 days, transparency scores improved from 25 to 35, industrial productivity rose from 1.5 to 4.5 percent, and internet penetration increased from 48 to 65 percent. Correlation analysis revealed strong positive links with infrastructure (0.78), human capacity (0.72), and governance (0.69), while contextual constraints had a negative effect (-0.55). Regression confirmed infrastructure readiness had the largest effect (β = 0.41), followed by human capacity (β = 0.29) and governance (β = 0.22), with contextual constraints eroding progress (β = -0.18). The results imply that sustained investment in infrastructure, capacity building, and regulatory enforcement, combined with resilience planning, is critical for Iraq to achieve inclusive digital transformation. Recommendations include extending broadband to rural areas, scaling AI training, enforcing digital regulations, and embedding cyber security in national strategies.