Artificial Intelligence (AI) techniques have been deployed by different sectors of the economy worldwide. These techniques are integrated in the operation of different manufactures, industries, and services which raises the need for a well-developed AI ecosystem that allows the economy to reap the benefits of these technologies. The role of the government is crucial in terms of the degree of readiness to enhance the AI implementation through processing automation in the public services which improves the efficiency and fairness of the delivery of these services. This in turn is reflected in both the economic and social aspects such as attracting more investments, higher productivity, raising the citizens' standards of living, robust the regulatory framework, providing better educational and healthcare services, and stimulating economic growth. The research examines the impact of the AI government readiness on economic growth through the Cobb-Douglas production function by conducting a panel multiple regression model for 115 developing countries from 2020-2023. The results of the study reveal that AI government readiness has a positive and significant impact on economic growth in developing countries.