Rethinking Public Administration in the Digital Age: Governance, Transformation, and the Role of AI

Abstract

Public administration is undergoing a profound transformation driven by the integration of digital technologies into governance systems. While earlier phases of administrative modernization were framed around efficiency, simplification, and transparency, the rise of artificial intelligence (AI) introduces a fundamentally different form of transformation—one that reshapes administrative processes, governance norms, accountability mechanisms, and the relationship between the state and its citizens. Drawing on theoretical perspectives from Weberian bureaucracy, New Public Management, Digital-Era Governance, and experimentalist governance, this paper conceptualizes AI as a structural force that reconfigures decision-making authority and institutional logics.
The study employs a qualitative comparative analysis of three internationally recognized cases—Estonia, Finland, and Portugal contrasted with the Greek experience. The findings indicate that successful AI adoption depends less on technological capacity and more on the degree of institutional embedding. Estonia and Finland demonstrate how algorithmic systems can operate within transparent, interoperable, and accountable governance frameworks, while Portugal highlights the role of gradual institutional learning. In contrast, Greece has made significant progress in digitizing public services (e.g., gov.gr), but this advancement remains primarily technical, lacking institutional consolidation in areas such as algorithmic accountability, regulatory oversight, and cross-agency coordination.
The paper argues that AI constitutes not only a technological innovation but also a normative and institutional challenge. Without mechanisms of transparency, auditability, and public oversight, AI risks becoming a form of “silent legislation” that shapes rights and decisions without democratic scrutiny. Ensuring that AI strengthens—rather than undermines—public trust is therefore a central task for contemporary administrative reform.
JEL Classifications: D72, H83, O33, O38
Keywords: Public Administration, Digital Governance, Algorithmic Accountability, Artificial
Intelligence, Institutional Reform, Greece