ADVANTAGES AND RISKS OF ARTIFICIAL INTELLIGENCE AND AUTOMATED DECISION-MAKING IN ADMINISTRATIVE LAW

Iskra Akimovska Maletić
Faculty of Security in Skopje, University “St. Kliment Ohridski” in Bitola, Republic of North Macedonia

States are rapidly digitalizing public administration, using digital public services to reduce the administrative burden on businesses and citizens by making public services and interactions more efficient, cheaper, transparent and faster. The digitalization of public administration and the increasing use of artificial intelligence (AI) are profoundly transforming the functioning of modern states and the relationship between public authorities and citizens. This increased transformation raises significant questions regarding the compatibility of algorithmic governance with the rule of law, fundamental rights, and core principles of administrative law.

This paper examines the legal implications of integrating digital technologies and AI-based systems into public administration, with a particular focus on fundamental principles of administrative law. As automated decision-making by public authorities in their dealings with individuals is increasing, traditional legal principles such as transparency, accountability, proportionality and privacy, face new challenges. The analysis considers relevant EU and CoE instruments and standards, with particular attention to the principles of legality, transparency, non-discrimination, accountability, personal data protection and the right to good administration in the context of AI-based systems in public administration and automated administrative decision-making.

Governments differ significantly in their readiness to implement AI in the delivery of public services, reflecting varying levels of digital transformation and preparedness for the use of AI systems. In this respect, countries in the Western Balkan region continue to demonstrate limited institutional capacity and uneven levels of digital maturity, despite ongoing efforts undertaken within the framework of the European integration process.

Keywords: administrative law, public administration, artificial intelligence, automated decision-making.

Brkan M. 2019. Do algorithms rule the world? Algorithmic decision-making and data protection in the framework of the GDPR and beyond, International Journal of Law and Information Technology, 27(2), pp. 91–121. https://doi.org/10.1093/ijlit/eay017

Council of Europe. 2022. Artificial Intelligence and Administrative Law. Strasbourg: Council of Europe Publishing.

eGovernment Benchmark. 2024. Insight report. Available at: https://www.capgemini.com/wp-content/uploads/2024/07/eGovernment-Report-2024.pdf (5. 3. 2026).

European Commission. Report Albania. 2025. Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, 2025 Communication on EU enlargement policy. Brussels, 4.11.2025. SWD (2025) 750 final. Available at: https://enlargement.ec.europa.eu/document/download/fe9138b7-90fe-4277-a12c-3a03f6d1957f_en?filename=albania-report-2025.pdf (10. 3. 2026).

European Commission. Report Bosnia and Herzegovina. 2025. Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. 2025 Communication on EU enlargement policy. Brussels, 4.11.2025 SWD (2025) 751 final. Available at: https://enlargement.ec.europa.eu/document/download/5d8fc547-f8f8-456f-84e3-b38998acfafd_en?filename=bosnia-and-herzegovina-report-2025.pdf (11. 3. 2026).

European Commission. Report Montenegro. 2025. Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, 2025 Communication on EU enlargement policy. Brussels, 4.11.2025. SWD (2025) 754 final/2. Available at: https://enlargement.ec.europa.eu/document/download/9ae69ea7-81d6-4d6a-a204-bd32a379d51d_en?filename=montenegro-report-2025.pdf (11. 3. 2026).

European Commission. Report North Macedonia. 2025. Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. 2025 Communication on EU enlargement policy. Brussels, 4.11.2025. SWD (2025) 753 final. Available at: https://enlargement.ec.europa.eu/document/download/267b368e-6b55-4a42-bb72-6395593de4da_en?filename=north-macedonia-report-2025.pdf (6. 3. 2026).

European Commission. Report Serbia. 2025. Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. 2025 Communication on EU enlargement policy. Brussels, 4.11.2025. SWD (2025) 755 final. Available at: https://enlargement.ec.europa.eu/document/download/6e68ce26-b95b-48e1-921a-c60c12da8f00_en?filename=serbia-report-2025.pdf (7. 3. 2026).

Koivisto, I., Koulu, R. & Larsson, S. 2024. User accounts: How technological concepts permeate public law through the EU’s AI Act. Maastricht Journal of European and Comparative Law, 31(3), pp. 412–432. https://doi.org/10.1177/1023263X241248469

Malgieri G. 2019. Automated decision-making in the EU Member States: The right to explanation and other “suitable safeguards” in the national legislations. Computer Law & Security Review, 35(5), 105327. https://doi.org/10.1016/j.clsr.2019.05.002

OECD Recommendation Concerning Guidelines Governing the Protection of Privacy and Transborder Flows of Personal Data (OECD Privacy Guidelines). 1980. Available at: https://www.oecd.org/en/publications/2002/02/oecd-guidelines-on-the-protection-of-privacy-and-transborder-flows-of-personal-data_g1gh255f.html

OECD Recommendation on Artificial Intelligence (OECD/LEGAL/0449, 2019, amended 2023). Available at: https://legalinstruments.oecd.org/en/instruments/oecd-legal-0449

OECD. 2024a. Western Balkans Competitiveness Outlook 2024: Regional Profile, Competitiveness and Private Sector Development. Available at: https://www.oecd.org/en/publications/western-balkans-competitiveness-outlook-2024-regional-profile_170b0e53-en.html

OECD. 2024b. Explanatory Memorandum on the updated OECD definition of an AI system. Available at: https://www.oecd.org/en/publications/explanatory-memorandum-on-the-updated-oecd-definition-of-an-ai-system_623da898-en.html

OECD. 2025a. Governing with Artificial Intelligence, the State of Play and Way Forward in Core Government Functions. Available at: https://www.oecd.org/en/publications/2025/06/governing-with-artificial-intelligence_398fa287.html

OECD. 2025b. Public administration in the Western Balkans 2024–Regional overview of assessments against the Principles of Public Administration. Available at: https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/03/public-administration-in-the-western-balkans-2024_07555c85/1ec4c18f-en.pdf

Oxford Insights. 2023. Government AI Readiness Index. Available at: https://oxfordinsights.com/wp-content/uploads/2023/12/2023-Government-AI-Readiness-Index-1.pdf (4. 3. 2026).

Oxford Insights. 2024. Government AI Readiness Index. Available at: https://oxfordinsights.com/wp-content/uploads/2024/12/2024-Government-AI-Readiness-Index-2.pdf (2. 3. 2026).

Panagopoulou, F. 2024. Algorithmic Decision-Making in Public Administration. Journal of Public Administration, 6(1), pp. 1–10. https://doi.org/10.22259/2642-8318.0601001

Rodríguez de las Heras Ballell, T. 2022. Guiding Principles for Automated Decision-Making in the EU: ELI Innovation Paper. Vienna: European Law Institute.

Sheehy, B. & Ng, Y. F. 2024. The Challenges of AI Decision-Making in Government and Administrative Law: A Proposal for Regulatory Design. Indiana Law Review, 57(3), pp. 665–699. https://doi.org/10.18060/28360

Thijs, N., Lauk, M. & Díaz Pulido, J.M. 2025. The Single Digital Gateway in the Western Balkans: Assessment of readiness to implement Single Digital Gateway Regulation requirements. SIGMA Papers, No. 74. Paris: OECD Publishing. https://doi.org/10.1787/3cbd03cd-en

Tveita, LJ. & Hustad, E. 2025. Benefits and Challenges of Artificial Intelligence in Public sector: A Literature Review. Procedia Computer Science, 256, pp. 222–229. https://doi.org/10.1016/j.procs.2025.02.115

Vlada Republike Srbije, Strategija razvoja veštačke inteligencije u Republici Srbiji za period 2025–2030. Available at: https://www.srbija.gov.rs/tekst/437277 (7. 3. 2026)

Williams R. 2022. Rethinking Administrative Law for Algorithmic Decision Making, Oxford Journal of Legal Studies, 42(2), pp. 468–494. https://doi.org/10.1093/ojls/gqab032

World Bank Group. 2025. Available at: https://www.worldbank.org/en/region/eca/brief/digital-transformation-and-public-sector-reform-western-balkans-progress-toward-eu-accession-and-economic-growth (5. 3. 2026)

Download the article