AI ETHICS FOR PUBLIC FINANCIAL SYSTEMS: A CROSS-SECTOR PERSPECTIVE

Source abstract

This study explores what ethics entail regarding the use of Artificial Intelligence (AI) to govern financial systems in governments and how it affects efficiency, fairness, accountability, and transparency in particular. It brings to light the benefits of AI in boosting decision-making in such systems as budgeting and revenue management, and the detection of fraud, with the prospects of improvement in processing speed and accuracy. However, there are also ethical issues like the bias of algorithms and non-transparency, which are major problems. The paper examines how AI, such as PeopleSoft changing to Oracle Cloud, can help to automatize the work and predict the future financial trends. Nonetheless, it also addresses unintended consequences, like disparity of different demographic groups, and the increase in cost of monitoring them. The solution to such risks is an effective governance structure that involves periodic audits and the establishment of ethics committees based on AI. The adoption of AI should be perceived by policymakers as a change of leadership and should be based on equity, transparency, and trust among citizens. The study concludes by stating the recommendations on how ethical risks can be reduced by placing more emphasis on human control and transparency in AI systems.