ARTIFICIAL INTELLIGENCE ADOPTION IN PUBLIC POLICY PROCESSES AND ITS EFFECTS ON GOVERNANCE EFFECTIVENESS AND PUBLIC SECTOR MANAGEMENT PERFORMANCE: ROLES OF DECISION-MAKING QUALITY AND INSTITUTIONAL ACCOUNTABILITY

Abstract

Artificial intelligence is increasingly being adopted in public policy processes as governments seek to enhance governance effectiveness and improve public sector management performance in response to growing complexity and resource constraints. Despite expanding interest in artificial intelligence–enabled governance, empirical evidence explaining how artificial intelligence adoption translates into governance and performance outcomes remains limited. This study aims to examine the effects of artificial intelligence adoption in public policy processes on governance effectiveness and public sector management performance, with particular emphasis on the mediating roles of decision-making quality and institutional accountability. Using a quantitative, cross-sectional research design, data were collected through a structured questionnaire administered to public sector employees and managers involved in policy formulation and administrative decision-making. Partial least squares structural equation modeling was employed to test the proposed direct and mediation relationships. The findings reveal that artificial intelligence adoption has a significant positive effect on both governance effectiveness and public sector management performance. Furthermore, decision-making quality and institutional accountability were found to significantly mediate these relationships, indicating that artificial intelligence adoption enhances public sector outcomes primarily through improved internal decision processes and strengthened accountability mechanisms. The study contributes to the literature by offering a process-oriented explanation of artificial intelligence–enabled governance and provides practical insights for policymakers and public managers seeking to leverage artificial intelligence for sustainable improvements in governance and administrative performance.