Artificial Intelligence (AI) has emerged as a transformative force in digital government, accelerating the evolution from eGovernment to digital governance. This chapter explores how AI and digital transformation reshape public administration, service delivery, and citizen engagement. It begins by distinguishing eGovernment, which focuses on digitizing services, from digital government, integrating emerging technologies such as AI, IoT, and blockchain into governance. AI has transitioned from a niche field in computer science to a ubiquitous presence in public administration, influencing decision-making, automation, and policy formulation. The relationship between AI and digital transformation is analyzed, demonstrating AI’s role in driving efficiency, improving customer experiences, fostering innovation, and promoting a data-driven culture. As AI continues to shape the future of digital governance, public administrators must navigate its complexities with foresight, adaptability, and a focus on the public good to ensure equitable and effective governance.