Today, a significant switch from traditional systems to digital systems is evident in many countries, and this study, discusses the readiness of Papua New Guinea (PNG), as in November 2025, its Prime Minister, Honourable James Marape, officially opened digital transformation for the growth and development of the country. PNG has strong cultural diversity and falls under the developing countries. Artificial Intelligence (AI) has the capacity to reshape any developing country's economic development, but at the graduate level, universities do not provide Papua New Guineans with industry-relevant skills to equip and grasp industry-relevant opportunities. Modernizing sectors with digital tools can significantly support development, like adoption of AI, digital transformation, workforce development, and entrepreneurship skills, which can accelerate economic development. But, because of 840 living indigenous languages in the country, it is harder to introduce new AI technologies and digital technologies to uplift Papua New Guineans. AI surely can provide huge opportunities to Papua New Guineans, this study explored the adoption of AI in entrepreneurship, tourism, leadership, workforce optimization and business innovation, and checked if it can truly shape the future of global markets. Entrepreneurship and leadership qualities must be introduced in universities, where students are fostered with actionable academic and valuable skills. Various research has concluded PNG to have coordinated efforts for it to stay competitive in the tourism sector. The study emphasizes the significance of implementing strategic planning and effective policies to foster economic growth and digital transformation. The findings show limited skilled workforce, infrastructure, and internet connectivity in PNG, increasing barriers for AI adoption. The result prioritized improving the prerequisites to adopt AI, over technological sophistication, and suggests adopting locally appropriate AI governance frameworks to increase economic growth.