Artificial Intelligence (AI) is increasingly adopted by public sector organizations to provide better public services and to transform their internal processes. AI is now considered a key enabler for digital innovation and transformation in the public sector. However, AI is still relatively a new research area in the field of digital government. The term, AI, captures a wide range of technologies, techniques, and tools such as machine/deep learning, natural language processing, robotics, computer vision, and more recently Generative AI. While these AI technologies afford different applications and benefits in the gov- ernment context, they also create social, ethical, and legal challenges. These challenges require solutions combining both technical (e.g., data and algorithmic solutions to minimize bias) and institutional (e.g., governance structures and processes) mechanisms. The special issue is a collection of articles that contribute to a better understanding of the issues associated with AI deployment in different areas of government operations. They cover AI applications in the areas of emergency re- sponse, policy analysis, public bids, and citizen participation. The contributions also address the challenge of realizing a legal transparency regime for AI in government and the effect of AI in bureaucratic decision-making.