Relevance. In the modern world, artificial intelligence (AI) is one of the fastest growing areas of information technology, which is increasingly penetrating into various spheres of human activity. In the context of public and municipal management, AI is a technology that is able to automate and optimize work processes, improve the quality of services provided to citizens, and increase the level of security and transparency of government work.The purpose is to analyze the possibilities and risks of using artificial intelligence in state and municipal management, as well as to determine the prospects for its development in this area.Objectives: to analyze the advantages of using artificial intelligence in state and municipal management; to study the risks and challenges associated with its implementation; to analyze trends in the development of artificial intelligence in this area, as well as to determine the prospects for its use.Methodology. Empirical, theoretical, statistical and graphical representation methods were used in the course of scientific research.Results. The study revealed the advantages of AI in public administration (improving efficiency, improving the quality of services, transparency, security); risks and challenges were studied (lack of infrastructure, risk of privacy violations, problems of transparency of algorithms, risk of discrimination); trends in the development of AI were analyzed (e-government, optimization of workflows, personalization of services, monitoring of social media, security); the prospects of using AI (smart cities, virtual assistants, hybrid systems, decision support, cooperation with business, international cooperation) have been identified.Conclusions. Artificial intelligence can significantly improve the efficiency and quality of public and municipal administration. However, for the successful implementation of AI, it is necessary to solve problems such as the lack of infrastructure and qualified specialists, ensuring data security, transparency of algorithms and compliance with the regulatory framework. To do this, it is necessary to conduct further research, develop integrated approaches and take into account world experience. The prospects for using AI include the creation of smart cities, the use of virtual assistants, hybrid systems, decision support systems, business cooperation and international cooperation.