Artificial Intelligence in Administrative Decision-Making: A Narrative Review of Applications, Benefits, Challenges, and Governance Implications

Abstract

The use of Artificial Intelligence (AI) is becoming more and more a tool for administrative decision making and is helping to improve the efficiency of the organization, analyse data and make decisions based on evidence, whether in the public or private sector. While it has been embraced and promoted, algorithmic bias, data privacy, transparency and accountability issues remain to be addressed to ensure responsible use. This narrative review aims to review the literature on how AI can be used to assist in administrative decision making in the past five years (2020–2025) using key academic databases. The review covers the applications, benefits, challenges and governance implications of AI, and the necessity for the role of human oversight in administrative processes. While the results reveal a range of benefits, including enhanced decision-making speed, operational efficiency, predictive capabilities, and service delivery, ethical and legal considerations, alongside organizational challenges, need to be addressed to ensure these advantages are effectively managed. This review is an integrated synthesis of the current evidence and underscores the importance of using AI to assist – not replace – the human administrator, and to ensure decisions are responsible, accountable and ethical.