ADVANCING GOOD GOVERNANCE THROUGH AI-POWERED OVERSIGHT IN THE UNITED STATES: RISKS AND OPPORTUNITIES FOR PUBLIC INSTITUTIONS

Abstract

This study looks at how artificial intelligence (AI) is improving good governance through oversight in U.S. public institutions. It focuses on trends in adoption, operational improvements, and inherent risks. The research used a mixed-methods approach. It combined a quantitative content analysis of documents from 30 federal and state agencies with qualitative insights from 22 semi-structured interviews conducted between 2020 and 2024. The study focused on institutions that had adopted AI-based surveillance and monitoring systems after federal regulatory initiatives like the AI Bill of Rights (2022) and the NIST AI Risk Management Framework (2023). The quantitative analysis showed that 83% of the agencies sampled had put in place at least one AI oversight tool. This included fraud detection algorithms (60%), natural language processing for policy compliance (50%), and predictive analytics (40%). These changes led to clear outcomes. There was a 35% reduction in the time needed for audit cycles, a 28% increase in anomaly detection, and average savings of 12% in operational costs. The qualitative findings pointed out opportunities for better transparency, accountability, and focusing on high-risk cases. AI dashboards and logging systems improved traceability and visibility in decision-making. However, some challenges appeared. These included algorithmic bias impacting small contractors, data privacy issues when combining multiple datasets, and an over-reliance on automated outputs that sometimes caused “automation complacency.” The study concluded that AI-powered oversight offers important chances to improve efficiency and governance in the United States. This is possible if agencies incorporate ethical frameworks, staff training, and strong monitoring processes to reduce risks. These findings contribute to the discussion on AI use in public governance by providing evidence-based insights for policymakers and administrators who aim to strike a balance between innovation and accountability.