The Use of Artificial Intelligence in the Public Sector and Government Institutions

<jats:p>This chapter presents an analysis of Artificial Intelligence (AI) applications in the public sector and government institutions. It assesses the transformative potential of AI technologies across various government functions and examines related governance challenges through a systematic analysis of academic literature, policy frameworks and practical examples. The application of computational approaches to government functions predates the contemporary AI paradigm by decades. The first examples of “smart” systems in public administration were developed in the 1980s and 1990s through rule-based expert systems designed to systematize administrative decision-making. The shift from rule-based to learning-based systems is not merely a technical change. Today, the use of AI in the public sector and government institutions is defined by the development of Machine Learning (ML), particularly Deep Learning (DL), which enables systems to detect patterns and make predictions without the need for specific rules. The analysis reveals that while AI offers significant opportunities to improve public service delivery, operational efficiency and policy analytics, these benefits depend on addressing fundamental governance imperatives such as algorithmic fairness, transparency, accountability and institutional capacity building. However, realizing this potential while maintaining a commitment to democratic values requires thoughtful governance approaches that address both technical and institutional dimensions. The most effective applications will be those that align technological innovation with core public values, enhancing government capacity while maintaining fundamental commitments to equity, justice and democratic oversight.</jats:p>