ARTIFICIAL INTELLIGENCE AND PUBLIC SECTOR ORGANIZATIONAL PERFORMANCE: A SYSTEMATIC LITERATURE REVIEW
DOI:
https://doi.org/10.36563/aja8rz76Keywords:
Artificial Intelligence, Organizational Performance, Public Sector, Systematic Literature ReviewAbstract
This study aims to systematically map the Scopus-indexed literature on artificial intelligence and organizational performance in the public sector and to identify the mechanisms that explain the relationship between AI and organizational performance. A systematic literature review approach based on the PRISMA guidelines was used to identify, select, and synthesize relevant articles. The thematic synthesis indicates that the relationship between AI and organizational performance can be understood through several interrelated themes, including AI-based organizational capabilities, good governance, public values and the governance of automated systems, human resources and leadership, as well as innovation and knowledge management. The results of the synthesis indicate that the benefits of AI on performance are not universal but depend on organizational capabilities, the quality of governance, and the readiness of data and systems. Empirical evidence also remains concentrated in specific national contexts, while evidence regarding the context of local government in Indonesia remains limited. Based on these findings, this study formulates theoretical propositions grounded in Dynamic Capability Theory, which positions organizational capabilities as a key mechanism and governance and institutional context as conditions that can influence the relationship between AI and performance. These findings provide direction for the development of empirical models of AI and organizational performance in the public sector, particularly in Indonesian local governments.
Downloads
References
Alhosani, K., & Alhashmi, S. M. (2024). Opportunities, challenges, and benefits of AI innovation in government services: a review. Discover Artificial Intelligence, 4(1). https://doi.org/10.1007/s44163-024-00111-w
Bijalwan, P., Gupta, A., Mendiratta, A., Johri, A., & Asif, M. (2024). Predicting the Productivity of Municipality Workers: A Comparison of Six Machine Learning Algorithms. Economies, 12(1). https://doi.org/10.3390/economies12010016
Cusipag, M. N., Oluyinka, A. S., Jimenez, R. S., Gonzales, R. A., & Ferrer, R. L. (2025). Artificial intelligence: Its implementation in philippine healthcare institutions. Environment and Social Psychology, 10(7). https://doi.org/10.59429/esp.v10i7.3611
de Gennaro, D., Del Barone, L., & Buonocore, F. (2025). Organizational Dynamics of AI Integration in Italian Public Administration: A Case Study of INPS. In Modernizing Public Administration With New Digital Advancements (pp. 269–300). IGI Global Scientific Publishing. https://doi.org/10.4018/979-8-3373-1484-6.ch010
Dziundziuk, B., & Dziundziuk, V. (2026). Implementation of artificial intelligence in public administration: Prospects and challenges of the digital era. International Review of Administrative Sciences. https://doi.org/10.1177/00208523261419342
Gao, L., & Luna-Reyes, L. F. (2025). Implications of Adopting AI-Based Applications in Local Governments: A Systematic Literature Review from a Public Value Perspective. In Public Administration, Governance and Globalization (Vol. 6, pp. 363–388). Springer. https://doi.org/10.1007/978-3-032-00514-4_18
Giotopoulos, K. C., Michalopoulos, D., Vonitsanos, G., Papadopoulos, D., Giannoukou, I., & Sioutas, S. (2025). Dynamic Workload Management System in the Public Sector: A Comparative Analysis. Future Internet, 17(3). https://doi.org/10.3390/fi17030119
Henk, A., & Henk, O. (2025). From Antecedents to Outcomes: A Structured Literature Review on AI Implementation in Public Sector Organizations. https://doi.org/10.24251/HICSS.2025.228
Ifiss, S. (2026). Exploring the Relationship Between Machine Learning, Good Governance, and Organizational Performance in the Moroccan Public Sector. Croatian and Comparative Public Administration, 26(1), 109–129. https://doi.org/10.31297/hkju.26.1.2
Ifiss, S., & Saffaj, T. (2026). AI for sustainable development: Modelling the impact of the 17 SDGs on public sector performance under agenda 2030. European Journal of Sustainable Development Research, 10(1). https://doi.org/10.29333/ejosdr/17396
Imam, S. F., Riyanto, S., Santoso, S., & Ramli, Y. (2025). Analyzing the influence of leadership, learning, and empowerment on public sector performance: Combining PLS-SEM with SVM and k-NN approach. Social Sciences and Humanities Open, 12. https://doi.org/10.1016/j.ssaho.2025.102086
Kang, I.-G., Kim, N., Loh, W.-Y., & Bichelmeyer, B. A. (2021). A machine-learning classification tree model of perceived organizational performance in u.S. federal government health agencies. Sustainability (Switzerland), 13(18). https://doi.org/10.3390/su131810329
Kawtar, B., & Khadija, B. (2025). Artificial intelligence in public administration: a comprehensive literature review on opportunities, challenges and strategic implementation. International Journal of Technology Intelligence and Planning, 14(1), 52–77. https://doi.org/10.1504/IJTIP.2025.150735
Kim, Y. (2026). A Study on AI(Artifiacial Intelligence) Utilization Cases and Performance Analysis in Domestic Public Institutions. Journal of Korea Artificial Intelligence Association, 3(2), 27–33. https://doi.org/10.24225/jkaia.2025.3.2.27
Kumar, K. N., Subherwal, D., Renuka, R., & Rapolu, K. (2026). Employee Productivity and Digital Transformation in Modern Organizations. Journal of Daoist Studies, 19, 1407–1414. https://www.scopus.com/inward/record.uri?eid=2-s2.0-105041601012&partnerID=40&md5=e244dc1a7797d829c6441c348d609a35
Maake, G., & Schultz, C. M. (2025). Using AI in Performance Management: A Global Analysis of Local Government Practices. Administrative Sciences, 15(10). https://doi.org/10.3390/admsci15100392
Madan, R., & Ashok, M. (2023). AI adoption and diffusion in public administration: A systematic literature review and future research agenda. Government Information Quarterly, 40(1), 101774. https://doi.org/10.1016/j.giq.2022.101774
Mahmoud, M., Shma, T., Aziz, A., & Awad, A. (2025). Integrating knowledge management with smart technologies in public pharmaceutical organizations. Knowledge and Performance Management, 9(1), 31–44. https://doi.org/10.21511/kpm.09(1).2025.03
Mahula, S., & Crompvoets, J. (2025). People, Processes, and Innovation Progress: Understanding Organizational Drivers of AI Adoption in the Public Sector. In J. Ubacht, R. B. M, L. Danneels, R. Dobbe, S. Hofmann, M. Janssen, I. Lindgren, E. Loukis, F. Mureddu, A. Novak, P. Panos, P. Parycek, V. P. G, G. Schwabe, A. Simonofski, E. Tambouris, & V. Spitzer (Eds.), CEUR Workshop Proceedings (Vol. 4127). CEUR-WS. https://www.scopus.com/inward/record.uri?eid=2-s2.0-105038712063&partnerID=40&md5=d18083bef4368455454ed80a3c2d1f4b
Mahusin, N., Sallehudin, H., Singh, D., Falaki, N., Alzoubi, M. R., Alshurideh, M. T., Shelash, S. I., Mohammad, A. A. S., & Alzyoud, M. (2025). Leveraging AI for Public Good: Challenges and Strategies for Implementing AI in the Public Sector. In Studies in Computational Intelligence (Vol. 1173, pp. 549–565). Springer Science and Business Media Deutschland GmbH. https://doi.org/10.1007/978-3-031-73899-9_42
Mikalef, P., Lemmer, K., Schaefer, C., Ylinen, M., Fjørtoft, S. O., Torvatn, H. Y., Gupta, M., & Niehaves, B. (2023). Examining how AI capabilities can foster organizational performance in public organizations. Government Information Quarterly, 40(2). https://doi.org/10.1016/j.giq.2022.101797
Modarelli, G., Amelio, S., Gazzola, P., & Sardi, A. (2026). Unlocking human power: how artificial intelligence can transform performance measurement and management systems enhancing organizational decision-making. International Entrepreneurship and Management Journal, 22(2). https://doi.org/10.1007/s11365-026-01234-5
Molin, A. (2024). Examining Public Sector AI Adoption Mechanisms for AI adoption in the absence of authoritative strategic direction. In L. H.-C., D. D. Cid, M. A. Macadar, & F. Bernardini (Eds.), ACM International Conference Proceeding Series (pp. 764–775). Association for Computing Machinery. https://doi.org/10.1145/3657054.3657278
Moore, M. H. (1995). Creating public value: Strategic Management in Government. Harvard University Press.
OECD. (2025). Government at a Glance: Southeast Asia 2025. OECD Publishing. https://doi.org/10.1787/bc89cb32-en
Ogunrinde, A., & De-Pablos-Heredero, C. (2026). AI Adoption in Local Government: Productivity, Systemic Risk, and Institutional Resilience: Evidence from a PRISMA 2020 Review. Systems, 14(6). https://doi.org/10.3390/systems14060671
Osborne, S. P. (2006). The New Public Governance? Public Management Review, 8(3), 377–387. https://doi.org/10.1080/14719030600853022
Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., Shamseer, L., Tetzlaff, J. M., Akl, E. A., Brennan, S. E., Chou, R., Glanville, J., Grimshaw, J. M., Hróbjartsson, A., Lalu, M. M., Li, T., Loder, E. W., Mayo-Wilson, E., McDonald, S., … Moher, D. (2021). The PRISMA 2020 statement: An updated guideline for reporting systematic reviews. International Journal of Surgery, 88, 105906. https://doi.org/10.1016/j.ijsu.2021.105906
Phan, T. T., Van Nguyen, P., Corvello, V., & Pham, T. T. P. (2026). AI capacity in the public sector: Pathways from the environmental context to an organizational impact. Journal of Innovation and Knowledge, 13. https://doi.org/10.1016/j.jik.2025.100931
Porumbescu, G., Young, M. M., & Yang, K. (2025). Introduction to Special Issue on Generative AI and Public Administration: Performance, Accountability, and Democratic Governance. Public Performance & Management Review, 48(6), 1263–1267. https://doi.org/10.1080/15309576.2025.2570315
Riyadi, A., Kuswarno, E., Sugiana, D., & Suryana, A. (2026). MACHINE LEARNING FOR PUBLIC SECTOR PERFORMANCE PREDICTION: THE ROLE OF COMMUNICATION, DECISION-MAKING, AND STRATEGY ALIGNMENT. Journal of Applied Engineering and Technological Science, 7(2), 1449–1465. https://doi.org/10.37385/jaets.v7i2.9624
Saida, I. (2025). Synergy between Artificial Intelligence and Good Governance: Deciphering Predictive Dynamics for Optimal Public Performance in Morocco. International Review of Management and Marketing, 15(4), 143–152. https://doi.org/10.32479/irmm.18725
Santos, R., Brandão, A., Veloso, B., & Popoli, P. (2026). The use of AI in government and its risks: lessons from the private sector. Transforming Government: People, Process and Policy, 20(1), 77–97. https://doi.org/10.1108/TG-02-2024-0038
Selten, F., & Meijer, A. (2021). Managing Algorithms for Public Value. International Journal of Public Administration in the Digital Age, 8(1). https://doi.org/10.4018/IJPADA.20210101.oa9
Sharif Ismail, J. I. M., & Muhammad, M. N. (2022). Artificial Intelligence Innovation Related Factors Affecting Organizational Performance. International Journal of Sustainable Construction Engineering and Technology, 13(2 Special Issue), 203–212. https://doi.org/10.30880/ijscet.2022.13.02.018
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Thanh, N. H., & Cong, B. T. (2026). Harnessing Artificial Intelligence (AI) for enhanced organizational performance in public sectors. Humanities and Social Sciences Communications, 13(1). https://doi.org/10.1057/s41599-026-06571-y
Tjahjadi, B., Soewarno, N., Fairuzi, A., & Sutarsa, A. A. P. (2026). Effect of performance management systems on business performance: mediating roles of open innovation and organizational ambidexterity. Management Research Review, 49(2), 191–212. https://doi.org/10.1108/MRR-06-2025-0446
Tveita, L. J., & Hustad, E. (2025). Benefits and Challenges of Artificial Intelligence in Public sector: A Literature Review. Procedia Computer Science, 256, 222–229. https://doi.org/10.1016/j.procs.2025.02.115
Verna, E., Genta, G., & Galetto, M. (2026). Risk-based predictive modelling for audit verification: evidence from EU-funded programmes. Quality and Quantity, 60(3), 11115–11142. https://doi.org/10.1007/s11135-026-02725-x
Yfantis, V., & Ntalianis, K. (2020). Exploring the implementation of artificial intelligence in the public sector. International Journal of Machine Learning and Networked Collaborative Engineering, 03(04), 210–218. https://doi.org/10.30991/IJMLNCE.2019v03i04.003
Zuiderwijk, A., Chen, Y. C., & Salem, F. (2021). Implications of the use of artificial intelligence in public governance: A systematic literature review and a research agenda. Government Information Quarterly, 38(3), 101577. https://doi.org/10.1016/j.giq.2021.101577
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Alissa Qodrunnada, Isnalita

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Copyright on any article is retained by the author(s).
- The author grants the journal, right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal’s published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
- The article and any associated published material is distributed under the Creative Commons Attribution-ShareAlike 4.0 International License
Deprecated: json_decode(): Passing null to parameter #1 ($json) of type string is deprecated in /var/www/html/plugins/generic/citations/CitationsPlugin.php on line 68

_.jpg)
