Internet Exchange: A Catalyst for Digital Economy Towards AI-Driven Governance (Govtech)

Mohd Hilal Muhammad, Ahmad Afif Ahmarofi, Mohd Zhafri Mohd Zukhi, Muhammad Khairul Zharif Nor A’zam and Muhammad Hanif Othman
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Mohd Hilal Muhammad: Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA (UiTM) Kedah, 08400 Merbok Kedah Malaysia.
Ahmad Afif Ahmarofi: Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA (UiTM) Kedah, 08400 Merbok Kedah Malaysia.
Mohd Zhafri Mohd Zukhi: Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA (UiTM) Kedah, 08400 Merbok Kedah Malaysia.
Muhammad Khairul Zharif Nor A’zam: Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA (UiTM) Kedah, 08400 Merbok Kedah Malaysia.
Muhammad Hanif Othman: Faculty of Business and Management, Universiti Teknologi MARA (UiTM) Kedah, 08400 Merbok Kedah Malaysia.

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 9, 1961-1972

Abstract: The rapid advancement of digital technologies has underscored the critical role of Internet Exchange (IX) points in shaping the Digital Economy and facilitating AI-driven governance (GovTech). This study addresses the problem of how IX infrastructure impacts the efficiency and effectiveness of digital services and AI applications within governance structure. The aim of the study is to explore the synergy between IX points and the Digital Economy and to analyse their combined influence on AI-driven governance, particularly focusing on how these elements contribute to enhanced public administration and economic growth. Utilizing a mixed-methods approach, the study integrates quantitative analysis of IX infrastructure impact, comparative case studies, and empirical data from recent advancements in digital technologies. Data were collected through surveys of key stakeholders, performance metrics of digital services, and case studies from diverse geographical contexts. The analysis employed statistical methods to assess correlations between IX infrastructure quality and digital economy outcomes, as well as the effectiveness of AI integration in governance. The findings reveal that robust IX infrastructure significantly enhances digital transaction efficiency and supports the effective deployment of AI technologies in governance. High-quality IX points contribute to reduced latency and improved data throughput, which are essential for real-time analytics and decision-making processes in public administration. This synergy fosters a reinforcing loop where advancements in IX infrastructure bolster AI capabilities, driving both economic growth and enhanced governance. The implications of the study are twofold. Theoretically, it extends the Resource-Based View (RBV) and Technology Acceptance Model (TAM) by integrating them within the context of digital infrastructure and governance. Practically, it underscores the need for policymakers to invest in and equitably distribute IX infrastructure to support digital and AI advancements. The study highlights the importance of addressing regional disparities in IX infrastructure and suggests future research into the long-term effects of IX investments on technological and economic outcomes.

Date: 2024
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