Using AI in public finance: opportunities and risks for EU integration
DOI:
https://doi.org/10.11606/issn.1982-6486.rco.2026.242018Keywords:
Artificial intelligence, State budget, Digitalization, Taxation, Financial modellingAbstract
The article examines the use of AI technologies in public finance in Ukraine in the context of integration into the EU. The introduction of AI is seen as a digital transformation tool that can increase transparency, reduce the risk of fraud, and ensure that Ukrainian financial processes are adapted to the requirements of the AI Act. The research methodology combines the methods of monitoring, comparative legal analysis, content analysis, and step-by-step detailing. The source base includes scientific papers, reports of international organisations, and EU regulations. As a result, it is found that the chronic budget deficit of Ukraine, which worsened after 2022, requires the introduction of innovative approaches to public finance management. The potential of AI in taxation and financial modelling is analysed, and its positive effects are identified such as automation, time saving, improved analytical accuracy, and reduced risk of fraud. However, the risks associated with cybersecurity, data quality and high implementation costs are outlined. Based on the content analysis, a step-by-step algorithm for introducing AI into the public finance management system of Ukraine is created, taking into account the requirements of the AI Act. The suggested algorithm can become the basis for harmonising Ukraine's financial management with EU standards and facilitate effective digital transformation of the public sector. The use of AI in public finance is seen as a strategic condition for European integration, ensuring transparency, accountability and stability of Ukraine’s financial system.
Downloads
References
Agency for Legislative Initiatives. (2025). Key challenges and priorities of the state budget 2025. Retrieved from https://parlament.org.ua/en/analytics/key-challenges-and-priorities-of-the-state-budget-2025/
Alazzam, F.A.F., Shakhatreh, H.J.M., Gharaibeh, Z.I.Y., Didiuk, I., & Sylkin, O. (2023). Developing an information model for e-commerce platforms: A study on modern socio-economic systems in the context of global digitalization and legal compliance. Ingenierie des Systemes d'Information, 28(4), 969-974. https://doi.org/10.18280/isi.280417
Balkı, A., & Göksu, S. (2025). The relationship between public expenditures and economic growth in the scope of economic classification: The case of Turkiye. Panoeconomicus, 72(4), 547-582. https://doi.org/10.2298/PAN220925006B
Belova, I., Yaroshchuk, O., & Homotiuk, A. (2023). Development of digitalization processes in the European Union: prospective experience for Ukraine. Economic Analysis, 33(1), 180-191. https://doi.org/10.35774/econa2023.01.180
Bernales-Vásquez, R., & Sánchez-Dávila, K. (2025). Digitization of public financial management: Trends and applications in the scientific literature. Revista Científica de Sistemas e Informática, 5(1), article number e897. https://doi.org/10.51252/rcsi.v5i1.897
Bostan, I. (2024). The role of artificial intelligence (AI) in understanding, deepening, and applying financial and fiscal law regulations. European Journal of Law and Public Administration, 11(2), 1-14.
Bouchetara, M., Zerouti, M., & Zouambi, A. R. (2024). Leveraging artificial intelligence (ai) in public sector financial risk management: Innovations, challenges, and future directions. EDPACS, 69(9), 124-144. https://doi.org/10.1080/07366981.2024.2377351
Derlytsia, A. (2020). The future of public finance: An introduction to financial futurology. Finance of Ukraine, 2, 115-126. https://doi.org/10.33763/finukr2020.02.115
Dike, S.C., & Worugji, R. (2020). The role of artificial intelligence and research in promoting taxpayer base and behaviour. The International Journal of Social Sciences and Humanities Invention, 7(11), 6281-6291.
Doroshenko, O., Pakhut, A., & Sydoruk, A. (2024). Prospects of implementation of artificial intelligence algorithms in public procurement processes in Ukraine. Bulletin of the National University of Water and Environmental Engineering: Economic Sciences, 106(2), 34-42. https://doi.org/10.31713/ve220244
Ernst, E., Merola, R., & Samaan, D. (2019). Economics of artificial intelligence: Implications for the future of work. IZA Journal of Labor Policy, 9(1), 1-35. https://doi.org/10.2478/izajolp-2019-0004
European Parliament and the Council. (2024). Regulation (EU) 2024/1689 of the European Parliament and of the Council of 13 June 2024 laying down harmonised rules on artificial intelligence and amending Regulations (EC) No 300/2008, (EU) No 167/2013, (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1139 and (EU) 2019/2144 and Directives 2014/90/EU, (EU) 2016/797 and (EU) 2020/1828 (Artificial Intelligence Act). Retrieved from http://data.europa.eu/eli/reg/2024/1689/oj
Ezeife, E., Kokogho, E., Odio, P.E., & Adeyanju, M.O. (2025). Agile tax technology development in the U.S.: A conceptual framework for scalable and efficient enterprise solutions. Gulf Journal of Advance Business Research, 3(2), 512-526. https://doi.org/10.51594/gjabr.v3i2.94
Gao, X., Cao, L., & Gu, Q. (2024). Assessing the efficiency of China’s national fitness public services: a super-efficiency DEA-Malmquist–Tobit approach. Frontiers in Public Health, 12, 1-13. https://doi.org/10.3389/fpubh.2024.1433337
Kachula, S. (2025). Cybersecurity in public finance. Economy and Society, 77, 1-8. https://doi.org/10.32782/2524-0072/2025-77-69
Kanca, O.C., & Bayrak, M. (2024). Econometric research on the economic effects of tax amnesties. International Journal of Economics and Financial Issues, 14(4), 206-213. https://doi.org/10.32479/ijefi.16313
Karlin, M., Pryvydenets, I., & Demchuk, I. (2024). Problems and prospects of ensuring financial and banking security of Ukraine in the context of war and reconstruction. Economy and Society, 6, 1-8. https://doi.org/10.32782/2524-0072/2024-62-32
Khlivniuk, T.P. (2022). Modernization of the welfare state through digitalization for an aging population. Political Life, 2, 78-85. https://doi.org/10.31558/2519-2949.2022.2.12
Kimani, D., Adams, K., Attah-Boakye, R., Ullah, S., Frecknall-Hughes, J., & Kim, J. (2020). Blockchain, business and the fourth industrial revolution: Whence, whither, wherefore and how? Technological Forecasting and Social Change, 161, article number 120254. https://doi.org/10.1016/j.techfore.2020.120254
Krynytsia, S. (2023). The current trends in the digital technologies development and their impact on public finances. Collection of Scientific Papers of the State Tax University, 2, 82-120. https://doi.org/10.33244/2617-5940.2.2023.82-120
Kumari, B., Kaur, J., & Swami, S. (2024). Adoption of artificial intelligence in financial services: a policy framework. Journal of Science and Technology Policy Management, 15(2), 396-417. https://doi.org/10.1108/JSTPM-03-2022-0062
Kussainov, K., Goncharuk, N., Prokopenko, L., Pershko, L., Vyshnivska, B., & Akimov, O. (2023). Anti-corruption management mechanisms and the construction of a security landscape in the financial sector of the EU economic system against the background of challenges to European integration: Implications for artificial intelligence technologies. Economic Affairs (New Delhi), 68(1), 509-521. https://doi.org/10.46852/0424-2513.1.2023.20
Larikova, T., Ivankov, P., Novichenko, L., & Kydysiuk, Kh. (2024). Possibilities of integrating artificial intelligence technologies into the system of accounting and analytical support to public sector entities. Eastern-European Journal of Enterprise Technologies, 6(13-132), 88-97. https://doi.org/10.15587/1729-4061.2024.319051
Lavrukhina, K., Tytok, V., Biloshchytskyi, A., Tormosov, R., Kalinin, O., & Mostovenko, O. (2025). Research on the prospects and risks of digital economic transformation: positive impact, key threats, and the role of clusters in the transformation of Ukraine's national economy. In 2025 IEEE 5th International Conference on Smart Information Systems and Technologies (SIST) (pp. 1-7). Astana: IEEE. https://doi.org/10.1109/SIST61657.2025.11139283
Lluch, J. (2025). AI financial modelling best practices guide. Abacum. Retrieved from https://www.abacum.ai/blog/ai-financial-modeling-best-practices
Malyshko, V. (2021). The current state and trends in the functioning of public finances in Ukraine. University Economic Bulletin, 50, 187-193. https://doi.org/10.31470/2306-546X-2021-50-187-193
Manta, O. (2020). Financing and Fiscality in the context of artificial intelligence at the global level. European Journal of Marketing and Economics, 3(1), 31-47. https://doi.org/10.26417/ejme.v3i1.p31-47
Ministry of Finance of Ukraine. (2025a). Consolidated budget of Ukraine (2011-2025). MinFin. Retrieved from https://index.minfin.com.ua/ua/finance/budget/cons/
Ministry of Finance of Ukraine. (2025b). State budget revenues by revenue items in 2025. MinFin. Retrieved from https://index.minfin.com.ua/ua/finance/budget/gov/income/
Mitroulia, M., Chytis, E., Kitsantas, T., Skordoulis, M., & Kalantonis, P. (2025). ESG strategy and tax avoidance: Insights from a meta-regression analysis. Journal of Risk and Financial Management, 18(9), article number 503. https://doi.org/10.3390/jrfm18090503
Moskalyk, R., & Moskalyk, L. (2020). Comparative analysis of tax policy indices of EU countries, Central Europe countries and Ukraine. Bulletin of Lviv University. Series International Relations, 48, 218-230. http://dx.doi.org/10.30970/vir.2020.48.0.11049
Myronenko, O. (2025). Adapting to the unknown: Ukraine’s public finances in the third year of war. Centre for Economic Strategy. Retrieved from https://ces.org.ua/public_finance_2024/
OECD. (2025). Governing with artificial intelligence: The state of play and way forward in core government functions. Paris: OECD Publishing. https://doi.org/10.1787/795de142-en
Petrukha, N., Klymenko, K., & Petrukha, S. (2024). Economy and public finances – the phenomenon of Ukrainian indomitability. Science Notes of KROK University, 74(2), 42-55. https://doi.org/10.31732/2663-2209-2024-74-42-55
Podakov, Ye. (2024). Public debt of Ukraine 2024: Current state and impact on the country’s economy. Transformational Economy, 4(9), 32-35. https://doi.org/10.32782/2786-8141/2024-9-5
Radionov, Y. (2022). Public finance in ensuring stability of the country’s financial system. Economy of Ukraine, 65(9-730), 77-98. https://doi.org/10.15407/economyukr.2022.09.077
Radionov, Y. (2025). The essence and state of the current development of digitalization of the Ukrainian economy. Economy and Society, 71, 1-9. https://doi.org/10.32782/2524-0072/2025-71-41
Rahayu, P. (2024). The impact of artificial intelligence on taxation aspect: A qualitative study. InFestasi, 20(1), 38-53. https://doi.org/10.21107/infestasi.v20i1.25002
Sinkovskyi, M., Borzenkova, O., & Nikulin, D. (2025). Implementation of financial technologies in public finance management processes under digitalization conditions. Current Issues of Economic Sciences, 11, 1-23. https://doi.org/10.5281/zenodo.15519523
Sitkiewicz, M., & Białek-Jaworska, A. (2024). Profit shifting to tax havens: Withholding tax impact on passive flows from Poland. Transnational Corporations Review, 16(2), article number 200059. https://doi.org/10.1016/j.tncr.2024.200059
Skuza, S., & Lizak, R. (2023). AI enables the control of public finances: US federal government initiatives. Białostockie Studia Prawnicze, 28(2), 175-195. https://doi.org/10.15290/bsp.2023.28.02.11
Slutstkyi, B. (2025). Ukraine’s public debt is growing: how much does the country owe and who will pay the bills. Centre for Economic Strategy. Retrieved from https://ces.org.ua/ukraines-national-debt-is-growing/
State Statistics Service of Ukraine. (2006). Consolidated budget of Ukraine in 1992-2006 (according to the State Treasury of Ukraine). Retrieved from https://ukrstat.gov.ua/operativ/operativ2006/fin/fin_ric/fin_u/2003.html
Tischenko, I.V., Kushal, I.M., & Rudych, M.V. (2025). Analysis of the dynamics and structure of direct taxes in Ukraine and their impact on the revenues of the state budget of Ukraine. Bulletin of the Volodymyr Dahl East Ukrainian National University, 289(3), 93-98. https://doi.org/10.33216/1998-7927-2025-289-3-93-98
Tsalan, M. (2025). Problems of harmonization of tax systems of European Union countries. Scientific Journal “City Development”, 2(6), 160-166. http://dx.doi.org/10.32782/city-development.2025.2-21
Tymoshenko, O., & Hudz, T. (2020). Analysis of Ukraine’s public finances stability. Scientific Bulletin of Poltava University of Economics and Trade, 95(4), 49-58. http://doi.org/10.37734/2409-6873-2019-4-6
Verkhovna Rada of Ukraine. (2024). Law of Ukraine No. 4059-IX “On the state budget of Ukraine for 2025” of 19 November 2024. Retrieved from https://zakon.rada.gov.ua/laws/show/4059-20#Text
Vinnykova, N. (2022). Digtial technologies in combating global corruption. The Journal of V.N. Karazin Kharkiv National University. Issues of Political Science, 41, 30-39. https://doi.org/10.26565/2220-8089-2022-41-04
Vipond, T. (2018). Public finance. How a nation manages its finances. Corporate Finance Institute. Retrieved from https://corporatefinanceinstitute.com/resources/economics/public-finance/
World Bank. (2021). World Bank support for public financial and debt management in IDA-eligible countries. Washington, DC: International Bank for Reconstruction and Development. https://doi.org/10.1596/IEG156280
Yermachenko, V., Bondarenko, D., Akimova, L., Karpa, M., Akimov, O., & Kalashnyk, N. (2023). Theory and practice of public management of smart infrastructure in the conditions of the digital society' development: Socio-economic aspects. Economic Affairs (New Delhi), 68(1), 617-633. https://doi.org/10.46852/0424-2513.1.2023.29
Yushko, S. (2019). Role of tax receipts in the formation of budget revenues. World of Finance, 60(3), 139-149.
Zalcewicz, A. (2023). New technologies in the control of public finances and building public confidence in the state. Białostockie Studia Prawnicze, 28(2), 23-35. https://doi.org/10.15290/bsp.2023.28.02.02
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Maryna Glukh, Ivan Bashta, Andrii Onyshchenko, Galyna Striiashko, Vasyl Goryn
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
The RCO adopts the Free Open Access policy, under the standard Creative Commons agreement (CC BY-NC-ND 4.0). The agreement provides that:
- Submission of text authorizes its publication and implies commitment that the same material is not being submitted to another journal. The original is considered definitive.
- Authors retain the copyright and grant the journal the right of first publication, with the work simultaneously licensed under the Creative Commons Attribution License which allows the sharing of the work with acknowledgment of authorship and initial publication in this journal.
- Authors are authorized to take additional contracts separately, for non-exclusive distribution of the version of the work published in this journal (e.g. publish in an institutional repository or as a book chapter), with necessary recognition of authorship and initial publication in this journal.
- Authors are allowed and encouraged to publish and distribute their work online (e.g. in institutional repositories or on their personal page) before or during the editorial process, as this can generate productive changes as well as increase the impact and citation of published work (See The Effect of Free Access).
- The journal does not pay copyright to the authors of the published texts.
- The journal's copyright holder, except those already agreed in the Free Open Access Agreement (CC BY-NC-ND 4.0), is the Accounting Department of the Faculty of Economics, Administration and Accounting of Ribeirão Preto of the University of São Paulo.
No submission or publication fees are charged.
Up to 4 authors per article are accepted. Exceptionally duly justified cases may be reviewed by the Executive Committee of the RCO. Exceptional cases are considered as: multi-institutional projects; manuscripts resulting from the collaboration of research groups; or involving large teams for evidence collection, construction of primary data, and comparative experiments.
It is recommended that the authorship be ordered by contribution of each of the individuals listed as authors, especially in the design and planning of the research project, in obtaining or analyzing and interpreting data, and writing. Authors must declare the actual contributions of each author, filling the letter to the editor, at the beginning of the submission, taking responsibility for the information given.
Authors are allowed to change throughout the evaluation process and prior to the publication of the manuscript. The Authors should indicate the composition and final order of authorship in the document signed by all those involved when accepted for publication. If the composition and authoring order is different than previously reported in the system, all previously listed authors should be in agreement.
In the case of identification of authorship without merit or contribution (ghost, guest or gift authorship), the RCO follows the procedure recommended by COPE.
