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Abstract Artificial intelligence (AI) national strategies provide countries with a framework for the development and implementation of AI technologies. Sixty countries worldwide published their AI national strategies. The majority of these countries with more than 70% are developed countries. The approach of AI national strategies differentiates between developed and developing countries in several aspects including scientific research, education, talent development, and ethics. This paper examined AI readiness assessment in a developing country (Palestine) to help develop and identify the main pillars of the AI national strategy. AI readiness assessment was applied across education, entrepreneurship, government, and research and development sectors in Palestine (case of a developing country). In addition, it examined the legal framework and whether it is coping with trending technologies. The results revealed that Palestinians have low awareness of AI. Moreover, AI is barely used across several sectors and the legal framework is not coping with trending technologies. The results helped develop and identify the following five main pillars that Palestine's AI national strategy should focus on: AI for Government, AI for Development, AI for Capacity Building in the private, public and technical and governmental sectors, AI and Legal Framework, and international Activities.