Implementing artificial intelligence (AI) in public settings requires a fundamental transformation of various social and technical aspects within public administration. However, the transformative efforts required for AI integration and use in government remain underexplored. This study introduces the concept of 'AI-augmented government transformation,' building on sociomateriality and sociotechnical theory, and develops a theoretical framework to explore this phenomenon. By applying this framework and drawing insights from expert interviews, we identify the strategic shifts and socio-technical adaptations essential for integrating AI into public administrations. Our analysis highlights the importance of opening the 'black box' of AI to gain a deep understanding of its underlying technologies and their materialities. The findings reveal complex interdependencies between AI materiality and the social and technical systems that public administrations must navigate. Specifically, AI, as a novel materiality, introduces new organizational dynamics, enhances employee capabilities, and alters operational routines and practices. These changes complement technical ones, such as upgrades and advancements in data collection and processing. By investigating the complexities of AI-augmented government transformation, this research offers novel and practical insights for policymakers and practitioners navigating the challenges and opportunities of AI integration.