Introduction:
The integration of Artificial Intelligence (AI) into public administration offers substantial benefits, including enhanced operational efficiency, personalized citizen services, and evidence-based policymaking. However, these innovations also bring profound ethical challenges, particularly concerning transparency, accountability, data privacy, and algorithmic fairness. As AI systems increasingly influence public sector decisions, it is essential to ensure that such technologies are implemented in ways that align with democratic values and public trust. This study examines how public sector institutions can responsibly adopt AI by embedding ethical principles into strategic governance processes.
Methods:
A qualitative multi-case study was conducted across five municipal governments in Europe that have adopted AI technologies in administrative operations or policy evaluation. This research involved semi-structured interviews with public sector leaders, data scientists, and IT managers, supported by documentary analysis and ethical audits. Cases were selected to reflect variation in geographic, organizational, and technological contexts.
Results:
The analysis revealed significant differences in the level of ethical readiness and strategic oversight. Successful implementations shared common practices: proactive stakeholder consultation, cross-disciplinary AI ethics committees, transparent communication of AI decision logic, and built-in mechanisms for algorithmic auditability. Conversely, institutions lacking these features faced issues such as diminished public confidence, legal ambiguities, and poor alignment between technical teams and executive leadership. These findings informed the development of a strategic framework for ethical AI governance based on three pillars: (1) Transparent Decision-Making Processes; (2) Inclusive Governance Structures; and (3) Continuous Ethical Risk Assessment and Adaptation.
Conclusion:
Ethical AI integration in the public sector requires more than technical safeguards—it demands strategic leadership and institutional commitment. The proposed framework provides a practical roadmap for public managers seeking to balance innovation with integrity, fostering trust and accountability in AI-enabled governance.
