This study investigates the integration of artificial intelligence (AI) technologies within Malaysia’s public administration, focusing on the implications for governance quality, decision-making efficiency, and public service delivery. The research utilizes a mixed-method approach, combining quantitative surveys and qualitative interviews with key stakeholders in public administration, to evaluate the extent of AI adoption and its impact across different administrative sectors. The findings reveal that while there is a growing interest and investment in AI technologies, significant barriers such as limited technical expertise, regulatory challenges, and infrastructural constraints continue to impede widespread adoption. Moreover, the study highlights the variations in AI integration between different sectors, with manufacturing and e-commerce showing higher adoption rates compared to areas like health and education. This discrepancy underscores the need for a more targeted approach in policy formulation to address sector-specific challenges. The study also explores the broader social and economic implications of AI integration, particularly in how it affects public trust and transparency in governance. Results indicate that effective AI deployment can enhance public sector accountability and citizen engagement, but only if coupled with strong ethical guidelines and data governance frameworks. Furthermore, the research identifies a critical gap in digital literacy among public sector employees, suggesting that ongoing training and capacity-building initiatives are essential for maximizing AI’s benefits. The study concludes with recommendations for policymakers, emphasizing the importance of fostering cross-sector collaborations, developing comprehensive regulatory frameworks, and investing in digital infrastructure to support sustainable AI integration. This research contributes to the broader understanding of digital transformation in public administration and offers a roadmap for enhancing public sector efficiency and governance outcomes in Malaysia, positioning the country as a leader in digital governance within the ASEAN region.
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