Artificial Intelligence and the Public Sector—Applications and Challenges

Advances in artificial intelligence (AI) have attracted great attention from researchers and practitioners and have opened up a broad range of beneficial opportunities for AI usage in the public sector. Against this background, there is an emerging need for a holistic understanding of the range and impact of AI-based applications and associated challenges. However, previous research considers AI applications and challenges only in isolation and fragmentarily. Given the lack of a comprehensive overview of AI-based applications and challenges for the public sector, our conceptual approach analyzes and compiles relevant insights from scientific literature to provide an integrative overview of AI applications and related challenges. Our results suggest 10 AI application areas, describing their value creation and functioning as well as specific public use cases. In addition, we identify four major dimensions of AI challenges. We finally discuss our findings, deriving implications for theory and practice and providing suggestions for future research.