AI, the Public Sector, and Policymaking

Artificial intelligence in the public sector is transforming how governments operate and how they interact with citizens. This chapter overviews how governments are using AI. It maps 13 categories of AI uses onto three core governance functions: policymaking, public service delivery, and internal management. This taxonomy illustrates benefits and opportunities that AI confers on the public sector. The chapter then examines three challenges: conflict between public service values and algorithmic optimization, growing information and power asymmetry from dependence on private vendors, and resulting accountability gaps. AI can improve policymaking, public service delivery, and internal operations. But responsible adoption does not happen automatically. It requires policy guidelines, legislation, and regulations, and stronger state capacity and governance frameworks. Without them, AI can undermine democratic accountability and evade oversight. Transparency, accountability, and enforceable constraints are central to governmental AI use that benefits citizens while reducing risks.