Artificial Intelligence for Financial Accountability and Governance in the Public Sector: Strategic Opportunities and Challenges

Ceray Aldemir () and Tuğba Uçma Uysal ()
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Ceray Aldemir: Public Administartion Department, Faculty of Economics and Administrative Sciences, Muğla Sıtkı Koçman University, 48000 Muğla, Türkiye
Tuğba Uçma Uysal: International Trade and Finance, Faculty of Economics and Administrative Sciences, Muğla Sıtkı Koçman University, 48000 Muğla, Türkiye

Administrative Sciences, 2025, vol. 15, issue 2, 1-19

Abstract: This study investigates the transformative capacity of artificial intelligence (AI) in improving financial accountability and governance in the public sector. The study aims to explore the strategic potential and constraints of AI integration, especially as fiscal systems become more complex and public expectations for transparency increase. This study employs a qualitative case study methodology to analyze three countries, which are Estonia, Singapore, and Finland. These countries are renowned for their innovative use of AI in public administration. The data collection tools included an extensive review of the literature, governmental publications, case studies, and public feedback. The study reveals that AI-driven solutions such as predictive analytics, fraud detection systems, and automated reporting significantly improve operational efficiency, transparency, and decision making. However, challenges such as algorithmic bias, data privacy issues, and the need for strong ethical guidelines still exist, and these could hinder the equitable use of AI. The study emphasizes the importance of aligning technological progress with democratic values and ethical governance by addressing these problems. The study also enhances the dialog around AI’s role in public administration. It provides practical recommendations for policymakers who seek to use AI wisely to promote public trust, improve efficiency, and ensure accountability in governance. Future research should focus on enhancing ethical frameworks and investigating scalable solutions to overcome the social and technical challenges of AI integration.

Keywords: artificial intelligence; financial accountability; governance; public sector (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2025
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