AI-DRIVEN DECISION MAKING IN PUBLIC SECTOR MANAGEMENT: OPPORTUNITIES AND ETHICAL CHALLENGES

Abstract

Artificial Intelligence (AI) is transforming public sector management by enhancing decision-making, improving service delivery, and optimizing resource allocation. However, its integration also raises significant ethical concerns regarding transparency, accountability, data privacy, and bias. This paper explores the dual nature of AI in public administration—its opportunities and the ethical dilemmas it presents. Using a qualitative case study approach, we examine three government agencies in Malaysia and Singapore that have implemented AI-based decision systems. The findings highlight improved operational efficiency, predictive capabilities, and cost reduction. However, they also reveal issues related to algorithmic opacity, lack of stakeholder consultation, and insufficient governance frameworks. The study proposes a policy-oriented ethical framework to guide responsible AI deployment in public sector governance.