Background Digital transformation, driven by artificial intelligence (AI) and digital innovation, has become a cornerstone for improving educational quality and administrative efficiency in higher education institutions. However, universities in developing countries like Iraq face significant challenges, including inadequate infrastructure, gaps in digital literacy, and resistance to change that hinder the effective integration of these technologies. Method This study used both descriptive and quantitative analysis using statistical tools represented by SPSS and Amos, tables and graphs. Data was collected from 206 faculty members working at the University of Ninevah using an electronic questionnaire after it was evaluated by experts in the field of artificial intelligence and digital transformation. Results The results of the statistical analysis showed that artificial intelligence has a positive impact on enabling digital innovation in universities. The study also revealed that digital transformation played a key mediating role in analyzing the relationship between artificial intelligence and digital innovation. Thus, the four hypotheses were confirmed, reflecting the validity of the hypothesized model and highlighting the importance of digital transformation as a strategic mechanism for improving the efficiency of artificial intelligence technologies and supporting digital innovation in universities. Conclusion Our study concludes that digital transformation, which supports enhanced interaction between artificial intelligence and digital innovation, is key to improving the quality of education and management ethics in Iraqi higher education institutions. This leads to better teaching practices, more engaged students, enhanced collaboration, and support for scientific research. However, weak infrastructure support, a prevailing digital culture, and some resistance to change pose real challenges to its implementation. Despite these obstacles, digital transformation remains a top investment priority for Iraqi higher education institutions to maximize the direct benefits of artificial intelligence and digital innovation.
Mohammed et al. (Wed,) studied this question.