This study presents a novel account of artificial intelligence driven digital transformation (AIDT) in the proposed relationship between artificial intelligence readiness (AIR) and business process efficiency (BPE). Data gathered from 227 firms was analyzed with PLS-SEM approach for testing the proposed AIDT model. Results confirmed that the link between AIR and BPE is positive and significant. Furthermore, it is confirmed that AIDT significantly mediates the positive relationship between AIR and BPE. Further, discussion on tangible and intangible aspects of AIR offers deep AI related theoretical insights into the AIDT related concept of organizational resource-based view. Policymakers and AI practitioners can use the AIDT model as a driver for enhancing BPE.