Title: The Information Governance Paradox in the AI Era: A Socio-Technical Analysis of Public Sector Readiness in Nepal Abstract: This working paper explores the intersection of Artificial Intelligence (AI) and Information Governance (IG) within the specific context of Nepal’s public sector. As the "Digital Nepal Framework" moves toward implementation, the introduction of AI-driven systems presents a unique set of challenges that go beyond technical infrastructure. Drawing on 11 years of professional experience as an IT and E-Governance expert with the UNDP and the World Bank, the author analyzes the "Human Element" of digital transformation. The paper identifies a significant "Veracity Gap" caused by fragmented data silos and institutional inertia. Using a socio-technical lens, the research investigates the readiness of the Nepalese workforce for AI integration, addressing concerns of job displacement and the necessity for strategic reskilling. The paper proposes a transition from traditional administrative roles to "Information Stewardship," arguing that a robust governance framework is essential to ensure digital trust and inclusive public service delivery in a federalized system. This inquiry serves as a foundational document for a PhD research project focused on building resilient information systems in the Global South. Key Highlights: Analysis of AI challenges in Nepal's federalized bureaucracy. Evaluation of the "Human Element" and workforce resistance to automation. Proposal for a Socio-Technical framework to ensure data veracity and digital trust. Author Biography: Deependra Paudel is an ICT4D professional with over a decade of experience in implementing large-scale e-governance systems in Nepal. He holds an MSc in E-Governance and has served as a technical expert for the World Bank and UNDP. His research focuses on the intersection of Information Systems, Public Policy, and AI Governance.