This article discusses the promises and challenges of artificial intelligence (AI) in government. Governments worldwide are investing in AI for various benefits like improved performance, cost reduction, and crime prevention. However, research suggests that these benefits may be overemphasized, and concerns about equity, ethics, justice, and fairness in AI systems have emerged, potentially threatening democratic principles. The article examines the Oxford Insights AI Readiness Index and uses the Fuzzy-Set Qualitative Comparative Analysis (fsQCA) to show that AI advancement alone is insufficient. It emphasizes that principles like privacy, transparency, inclusion, and accountability are essential for ensuring responsible AI governance, even in advanced democracies.