The impact of artificial intelligence readiness on reducing the knowledge gap and facilitating strategic partnerships between Iraqi companies and their international counterparts: the oil sector as a model

Abstract

This study quantitatively measured the impact of Artificial Intelligence Readiness (AI Readiness) on bridging the knowledge gap and facilitating strategic partnerships between Iraqi energy companies and their international counterparts. A quantitative approach was adopted using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4.0. Primary data were collected through an electronic questionnaire from a stratified random sample of 270 managers, engineers, and experts representing five major Iraqi oil companies and international partners. Results revealed a strong significant negative effect of AI Readiness on the knowledge gap (β = -0.642, p < 0.001) and a positive total effect on strategic partnerships (β = 0.707), with the knowledge gap acting as a complementary partial mediator (45% of total effect). The model explained 58.4% of the variance in strategic partnerships with high predictive power. The study recommends launching a national AI Readiness program (2026-2030), establishing a national Iraq Energy Data Lake, mandating AI Readiness thresholds in international contracts, and creating a national AI Energy Center of Excellence