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Smart State Aid: Integrating Ai Into Strategic Public Sector Management

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  • Alina Ioana ALEXANDRU (NICOLAESCU)
  • Constanta POPESCU

Abstract

This paper investigates the transformative potential of artificial intelligence (AI) in modernizing state aid management, with a focus on strategic efficiency and institutional transparency. Drawing on recent evaluations—including the World Bank’s 2021 analysis of Romania’s state aid programs—we highlight both the socio-economic impact of aid measures and persistent structural challenges such as data fragmentation, administrative burden, and limited oversight. By linking empirical findings with forward-looking digital solutions, we explore how AI—through automation, predictive analytics, and algorithmic monitoring—can optimize fund allocation, detect fraud, and enhance public trust. Comparative insights from European best practices (e.g., digital portals, interoperable registers, and open data frameworks) illustrate how Romania can align with evolving standards. The article concludes by proposing a strategic roadmap for embedding AI in public sector governance, grounded in ethical principles and legal safeguards for algorithmic decision-making.

Suggested Citation

  • Alina Ioana ALEXANDRU (NICOLAESCU) & Constanta POPESCU, 2025. "Smart State Aid: Integrating Ai Into Strategic Public Sector Management," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 19(1), pages 313-320, October.
    • Handle: RePEc:rom:mancon:v:19:y:2025:i:1:p:313-320
    DOI: 10.24818/IMC/2025/03.07
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