AI in the Public Sector: A Comprehensive Literature Review

Artificial Intelligence (AI) is rapidly transforming the public sector, presenting both significant opportunities and challenges. Public organizations are increasingly exploring AI to enhance efficiency, improve service delivery, and address complex societal problems. However, the integration of AI also raises concerns about ethics, transparency, and accountability. This article provides a comprehensive review of the existing literature on AI in the public sector, examining its current applications, potential impacts, and future research directions.

Defining AI precisely is crucial for understanding its implications in public management. While various definitions exist, a common thread is the ability of AI systems to analyze data, learn from experience, and make decisions with a degree of autonomy. In the public sector, AI can be defined as a technical system that translates its environment into data to infer structures and/or generate meaningful content based on a specific objective. This objective must align with citizen, societal, and environmental values, while ensuring organizational and societal control.

To provide a comprehensive overview, this review synthesizes findings from multiple systematic literature reviews on AI in public management. The selection criteria prioritized high-quality publications in academic journals with rigorous methodologies, focusing on the intersection of AI and public management. Key reviews included Sousa et al. (2019), Zuiderwijk et al. (2021), and Wirtz et al. (2021), which collectively cover a broad range of publications and perspectives on the topic. Studies were excluded if they lacked methodological rigor, focused primarily on technical aspects without addressing public management implications, or were published in non-academic outlets.

Existing literature reviews highlight several key themes. Sousa et al. (2019) found that AI applications in the public sector span various domains, including public service, economic affairs, environmental protection, and public safety. Zuiderwijk et al. (2021) emphasized the importance of addressing ethical and societal implications of AI in public governance. Wirtz et al. (2021) identified challenges related to data quality, algorithmic bias, and the need for public sector employees to develop AI-related skills. These reviews collectively underscore the transformative potential of AI in the public sector, while also highlighting the need for careful consideration of its risks and limitations.

AI presents numerous opportunities for public governance, including improved efficiency, enhanced decision-making, and personalized service delivery. AI can automate routine tasks, freeing up public sector employees to focus on more complex and strategic activities. AI-powered analytics can provide insights into citizen needs and preferences, enabling more targeted and effective policies. However, AI also poses significant challenges, such as the risk of algorithmic bias, the need for data privacy and security, and the potential for job displacement. Addressing these challenges requires careful planning, robust regulatory frameworks, and ongoing monitoring and evaluation.

The integration of AI in the public sector can significantly impact public trust and ethical considerations. Instances of AI-driven errors or biases can erode public confidence in government institutions. Ensuring transparency and accountability in AI systems is crucial for maintaining public trust. Ethical frameworks and guidelines are needed to address issues such as data privacy, algorithmic fairness, and the potential for discrimination. Public engagement and education are also essential for fostering a better understanding of AI and its implications for society.

Future research should focus on several key areas. More empirical studies are needed to assess the actual impact of AI on public sector performance and citizen outcomes. Research should also explore the development of ethical frameworks and governance mechanisms for AI in public management. Additionally, there is a need for interdisciplinary research that brings together experts from computer science, public administration, and other relevant fields to address the complex challenges of AI integration. Investigating the role of AI in promoting social equity and reducing disparities is also a critical area for future inquiry.

AI is poised to revolutionize the public sector, offering unprecedented opportunities to improve governance and service delivery. However, realizing the full potential of AI requires careful planning, ethical considerations, and ongoing research. By addressing the challenges and embracing the opportunities, public organizations can harness the power of AI to create a more efficient, equitable, and responsive government. Continued dialogue between AI experts, policymakers, and the public is essential for navigating the AI revolution and ensuring that its benefits are shared by all.