Artificial intelligence in the public administration system: institutional challenges, managerial transformations and regulatory frameworks

This article offers a comprehensive examination of the role of artificial intelligence (AI) technologies in the transformation of the public administration system under conditions of digitalisation of the public sector. It analyses the principal institutional challenges faced by public authorities in the implementation of algorithmic solutions, including the need to modernise organisational structures, develop the professional competencies of civil servants, and ensure transparency, accountability, and ethical justification of automated administrative procedures. Particular attention is paid to the evolution of managerial practices, manifested in a gradual shift from traditional administrative procedures towards data-centric, predictive, and algorithmically supported models of decision-making. It is argued that the integration of artificial intelligence leads to the emergence of new forms of administrative discretion, alters the balance between human and automated influence within governance processes, and exerts a significant impact on the structure of public policy, performance evaluation mechanisms, and the quality of public service delivery. From a regulatory and legal perspective, the article examines contemporary European approaches to the governance of artificial intelligence, including requirements related to safety, transparency, non-discrimination, and the protection of human rights. The significance of European Union legal acts, ethical principles developed by the Council of Europe, and recommendations of international organisations is outlined, as these instruments establish framework standards for the responsible use of algorithmic systems in the public sector. The article substantiates the necessity of developing a national regulatory model capable of reconciling technological innovation, administrative efficiency, and guarantees of democratic legitimacy. It is concluded that the effectiveness of digital transformation in public administration depends not solely on the technological capacity of artificial intelligence, but primarily on the institutional capability of the state, the quality of legal regulation, and the ability to ensure an appropriate level of public trust in algorithmically supported administrative decisions, including through the implementation of risk assessment procedures, oversight mechanisms, and accountability frameworks governing the use of artificial intelligence.