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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Navigating AI Adoption Challenges in China’s Public Sector: Implications for Efficiency and Performance

Li Xiaoyan, Reynaldo Gacho Segumpan

http://dx.doi.org/10.6007/IJARBSS/v15-i3/25098

Open access

The adoption of Artificial Intelligence (AI) in China's public services presents significant challenges that impact efficiency and performance. This study explores the major barriers to AI implementation, including technological feasibility, infrastructure limitations, talent shortages, ethical concerns, and financial constraints. Using an exploratory research approach, the study employs surveys and interviews to examine how AI adoption affects public service delivery. Quantitative data analysis indicates that while some participants recognize AI's potential in improving efficiency and personalization, a significant proportion remains skeptical about its overall benefits. Qualitative insights highlight the inefficiencies caused by inconsistent AI adoption across regions, resistance to change, and the lack of skilled professionals. Additionally, ethical issues such as algorithmic bias and data privacy concerns contribute to reduced public trust in AI-driven services. The study applies the Diffusion of Innovation (DOI) theory to understand AI adoption patterns and the Cost-Benefit Analysis (CBA) framework to evaluate its economic viability. The findings reveal that AI adoption has been met with mixed reactions, with concerns about delayed implementation, unequal access to services, increased workload for employees, reduced public trust, and missed opportunities for innovation. The results suggest that despite its potential benefits, AI implementation in China's public sector is hindered by systemic challenges that require coordinated efforts from government, industry, and academia. To enhance AI-driven efficiency and performance, this study recommends investing in AI infrastructure, improving training programs, implementing ethical guidelines, and promoting data-sharing frameworks. Addressing these challenges can lead to more inclusive, transparent, and effective public services. Future research should focus on longitudinal studies to assess the long-term impact of AI adoption and explore innovative policy measures for sustainable AI integration in public administration.

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Xiaoyan, L., & Segumpan, R. G. (2025). Navigating AI Adoption Challenges in China’s Public Sector: Implications for Efficiency and Performance. International Journal of Academic Research in Business and Social Sciences, 15(3), 1367–1381.