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The paper provides an overview of how Artificial Intelligence (AI) is applied in different government sectors. Our methodology is based on a systematic review of 74 papers retrieved from Web of Science and Scopus databases. We find that the extant literature is less focused on healthcare, ICT, education, social and cultural services, and fashion sector; while ignoring the practical implementation of AI in these sectors. We present an organizing framework stating different areas related to governance and throws light on research gaps in the extant literature that can be further worked upon for promoting the research in digital governance.