Economic Analysis Of The Application Of Artificial Intelligence In Public Administration In Ukraine

Abstract

The article provides a comprehensive economic analysis of the potential of artificial intelligence in the public administration system of Ukraine. From the standpoint of public finance and economics, the article focuses on the key benefits: automation of routine administrative procedures, increased productivity of public services, increased transparency of processes to minimize corruption risks, and improved quality and personalization of public services through machine learning. Methodologically, the study is based on Cost–Benefit Analysis, comparison of domestic practice with the international experience of European countries, as well as SWOT analysis and scenario forecasting for optimistic, basic, and pessimistic developments. The comparative study examines different models of organizing digital transformation projects, which allows us to identify the institutional and financial prerequisites for the effective launch of AI systems. Special attention is paid to investment policy: improving digital infrastructure (national data centers, cloud services, high-speed network access) and targeted human capital development through the training of AI specialists. The analysis of national challenges encompasses the issues of digital inequality in rural areas, outdated state registries, heightened cyber risks under martial law, and the trend of IT personnel emigrating abroad. Ethical and legal aspects are also considered, such as the harmonization of national legislation with the provisions of the European Artificial Intelligence Act and ensuring the responsible use of algorithms. Based on the collected data, the author formulates practical recommendations: creation of a specialized fund to support innovations in the field of AI, introduction of tax incentives for startups and IT companies, development of a single integrated platform of government data with built-in AI analytical tools, organization of regional competence centers, and independent ethical and economic audit of algorithmic systems. The author emphasizes that the strategic introduction of artificial intelligence into public administration can lead to an increase in the efficiency of resource use, a strengthening of public trust in public institutions, and long-term socio-economic development in Ukraine.