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Redefining state intervention in the economy: state aid in the Era of Artificial Intelligence

Alina Ioana NICOLAESCU (alexandru) and Constanța Popescu
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Alina Ioana NICOLAESCU (alexandru): Valahia University of Târgoviște, Romania
Constanța Popescu: Valahia University of Târgoviște, Romania

Theoretical and Applied Economics, 2025, vol. XXXII, issue Special, Summer, 19-26

Abstract: This paper explores the potential for integrating artificial intelligence (AI) into state aid management, focusing on improving efficiency, transparency, and accountability in the public and privat sector. The study employs a conceptual and legal-institutional analysis, complemented by a qualitative case study on Romania, based on the 2021 World Bank evaluation. It highlights how AI can support decision-making, risk monitoring, and the equitable distribution of funds and specific AI technologies and algorithms support strategic management of state aid. Best practices from other EU Member States (e.g., Estonia, the Netherlands) are presented, along with policy proposals for the effective integration of AI into state aid schemes. The digital revolution has been underway for some time, and Artificial Intelligence (AI) is not only redefining operational processes but also prompting a strategic reconfiguration of the role of the state in the economy and the financial support allocated from the European budget entails responsibilities regarding ethics, transparency, and compliance with European regulations.

Keywords: state aid; artificial intelligence; digital governance; strategic public management; algorithmic transparency. (search for similar items in EconPapers)
Date: 2025
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