Artificial Intelligence Impact on the European Union Public Sector

  • Ilinka Delipetreva European Commission Joint Research Center
Keywords: Artificial intelligence, public administration, EU AI Act, digital governance, public-sector innovation, algorithmic transparency, data governance, ethical AI, service transformation, workforce digital skills, digital sovereignty

Abstract

This paper examines the growing impact of artificial intelligence (AI) on public administration across the European Union, offering an integrated assessment of adoption trends, governance frameworks, public value creation, risks, and workforce transformation. Drawing on recent evidence and EU policy developments, it shows how administrations at EU, national, regional, and municipal levels are deploying AI for multilingual support, fraud detection, document automation, environmental monitoring, healthcare diagnostics, and smart-city management. The analysis highlights measurable efficiency gains, faster and higher-quality service delivery, and enhanced data-driven decision-making, while stressing that these benefits depend on robust data governance and purpose-driven implementation. It reviews the EU’s evolving regulatory environment—centred on the AI Act and complemented by GDPR, the Data Governance Act, and cybersecurity standards—which introduces risk-based controls, transparency duties, human oversight requirements, and post-market monitoring for high-risk public-sector systems. The paper also identifies persistent challenges, including opacity, bias, discrimination risks for vulnerable groups, digital exclusion and increased security vulnerabilities. Finally, it outlines the organisational and workforce changes necessary to scale AI responsibly, including new skills, agile processes, cross-disciplinary teams, and partnerships with academia and industry, and it considers the path ahead as the EU moves toward large-scale, rights-respecting AI deployment aligned with Digital Decade objectives.

References

1. Bekker, S., 2020. Fundamental rights in digital welfare states: The case of SyRI in the Netherlands. In: Netherlands Yearbook of International Law 2019, pp. 289–307. The Hague: T.M.C. Asser Press.
2. Community of Practice on Public Procurement of AI, 2025. Updated EU AI Model Contractual Clauses (MCC-AI). Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs. Available at: https://public-buyers-community.ec.europa.eu/ [Accessed 28 June 2025].
3. ELLIS (European Laboratory for Learning and Intelligent Systems), 2025. New EU Project ELLIOT Aims to Advance Multimodal Generalist Foundation Models. Press release, 25 June. Available at: https://ellis.eu/news/ [Accessed 28 June 2025].
4. European Commission, 2025. State of the Digital Decade 2025: Keep Building the EU’s Sovereignty and Digital Future. COM(2025) 290 final. Brussels. Available at: https://digital-strategy.ec.europa.eu/ [Accessed 28 June 2025].
5. European Union, 2016. Regulation (EU) 2016/679 (General Data Protection Regulation). Official Journal of the European Union, L 119, pp. 1–88.
6. European Union, 2022. Decision (EU) 2022/2481 establishing the Digital Decade Policy Programme 2030. Official Journal of the European Union, L 323, pp. 4–26.
7. European Union, 2022. Regulation (EU) 2022/1925 (Digital Markets Act). Official Journal of the European Union, L 265, pp. 1–66.
8. European Union, 2022. Regulation (EU) 2022/2065 (Digital Services Act). Official Journal of the European Union, L 277, pp. 1–102.
9. European Union, 2022. Regulation (EU) 2022/868 (Data Governance Act). Official Journal of the European Union, L 152, pp. 1–44.
10. European Union, 2024. Regulation (EU) 2024/1689 (Artificial Intelligence Act). Official Journal of the European Union, L 2024/1689, pp. 1–144.
11. Fitsilis, F. and Mikros, G., 2024. AI-Based Solutions for Legislative Drafting in the EU: Summary Report. Luxembourg: Publications Office of the European Union. DOI: https://doi.org/10.2799/6892931
12. Ministério das Finanças (Portugal), Autoridade Tributária e Aduaneira, 2024. Relatório sobre o Combate à Fraude e Evasão Fiscais e Aduaneiras — 2023. Lisbon: Ministério das Finanças. Available at: https://app.parlamento.pt/ [Accessed 28 June 2025].
13. Tangi, L., van Noordt, C., Combetto, M., Gattwinkel, D. and Pignatelli, F., 2022. AI Watch: European Landscape on the Use of Artificial Intelligence by the Public Sector. Luxembourg: Publications Office of the European Union. DOI: https://doi.org/10.2760/39336
14. Thelle, M.H., Hovmand, B.E., Oure, A.J., Tranholm-Mikkelsen, N., Pedersen, S.T. and Andersen, S., 2025. The AI Opportunity for eGovernment in the EU. Copenhagen: Implement Consulting Group. Available at: https://cms.implementconsultinggroup.com/ [Accessed 28 June 2025].
15. Van Roy, V., Rossetti, F., Perset, K. and Galindo-Romero, L., 2021. AI Watch – National Strategies on Artificial Intelligence: A European Perspective. Luxembourg: Publications Office of the European Union. DOI: https://doi.org/10.2760/069178
Published
2025-12-25
How to Cite
Delipetreva, I. (2025). Artificial Intelligence Impact on the European Union Public Sector. Vanguard Scientific Instruments in Management, 21(1), 79-89. Retrieved from https://vsim-journal.info/index.php?journal=vsim&page=article&op=view&path[]=561