Purpose – Artificial intelligence (AI) has transformed various sectors, including automotive, finance, media, travel and retail by leveraging new-age technologies. Education, banking, health care, social policy and regulation, within the public sector have witnessed significant AI applications and substantial benefits. The importance of AI in the public sector includes enhanced efficiency, improved decision-making, cost savings, citizen-centric services, etc. Despite these advancements, a mindful discussion on the societal impact of AI in the public sector demands comprehension regarding its subjugation. Therefore, this study aims to analyze the role of AI in transforming the public sector using a bibliometric analysis of recent trends and challenges. Design/methodology/approach – This study has used bibliometric analysis to trace the intellectual patterns of previous research. It comprises 231 articles from 2000 to 2024 from Scopus through the Scientific Procedures and Rationales for Systematic Literature Reviews protocol. This protocol has adopted a three-step process for identifying articles, i.e. assembling, arranging and assessing. Findings – The publication trend shows an upward trajectory since 2017, whereas network visualization protrudes with the recent trends and thematic expressions, namely, Global AI ethics and policy challenges in public sectors, AI adoption and governance in public sector, challenges and opportunities of implementing AI in public administration and AI’s role in economic and public transformation. Research limitations/implications – The findings suggest AI adoption in the public sector enhances transparency and efficiency but demands ethical guidelines, legal frameworks and stakeholder governance to address challenges such as data pr ivacy, algorithmic bias and public trust. Policies should promote responsible AI use, balancing innovation with accountability to improve public service delivery and uphold democratic values. Originality/value – This paper enhances the limited literature on the integration of AI in the public sector, focusing on emerging themes and trending topics with future research directions to furnish a holistic perspective. It aims to guide researchers and policymakers in exploring areas for further investigation in this domain.
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