Artificial intelligence (AI) is reshaping public administration through applications such as predictive policing, fraud detection, and chatbots. This literature review examines AI's integration in the public sector, focusing on opportunities and challenges in adopting technologies like machine learning, natural language processing, robotics, and big data analytics. Key benefits include improved efficiency, data-driven decision making, cost reduction and enhanced transparency. However, challenges persist, including ethical and privacy concerns, data governance, technological integration, and workforce skills. Drawing on case studies in healthcare, public safety, smart city management, and social services, this review outlines strategic measures for effective AI adoption, including clear policies, investment in data infrastructure, cross-sector collaboration, and robust ethical frameworks. It offers a concise foundation for understanding AI's impact on public administration.