SMART STATE AID: INTEGRATING AI INTO STRATEGIC PUBLIC SECTOR MANAGEMENT

Alina Ioana ALEXANDRU (nicolaescu) and Constanta Popescu

Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, 2025, vol. 19, issue 1, 313-320

Abstract: This paper investigates the transformative potential of artificial intelligence (AI) in modernizing state aid management, with a focus on strategic efficiency and institutional transparency. Drawing on recent evaluations—including the World Bank’s 2021 analysis of Romania’s state aid programs—we highlight both the socio-economic impact of aid measures and persistent structural challenges such as data fragmentation, administrative burden, and limited oversight. By linking empirical findings with forward-looking digital solutions, we explore how AI—through automation, predictive analytics, and algorithmic monitoring—can optimize fund allocation, detect fraud, and enhance public trust. Comparative insights from European best practices (e.g., digital portals, interoperable registers, and open data frameworks) illustrate how Romania can align with evolving standards. The article concludes by proposing a strategic roadmap for embedding AI in public sector governance, grounded in ethical principles and legal safeguards for algorithmic decision-making.

Keywords: artificial intelligence; digitalization; public policy; state aid; strategic public management; transparency. (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:rom:mancon:v:19:y:2025:i:1:p:313-320

DOI: 10.24818/IMC/2025/03.07

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