THE ROLE OF AI APPLICATIONS IN ROMANIA'S BUSINESS AND ADMINISTRATION SECTORS

Abstract

This research examines the role of Artificial Intelligence (AI) applications, specifically those using Large Language Models (LLMs) with real-time feedback, decision support system and data analysis and predictive forecasting, across two different key sectors in Romania. Through interviews with a mayor and a company manager, the study investigates how AI can enhance decision-making, improve operational efficiency, and foster innovation in both sectors. The results reveal that AI has the potential to streamline public services, reduce administrative delays, and increase citizen engagement. In the business environment, AI facilitates cost reduction, operational optimization, and improved competitiveness. However, the study identifies several challenges to AI adoption, including infrastructure, a lack of digital skills, financial constraints, and resistance to change. These barriers hinder both public administration’s and private companies' ability to fully leverage AI technologies. The findings underscore the importance of fostering collaboration between the public and private sectors to overcome these obstacles. In addition, the research raises some concerns about employee skills which underlines the need to invest in digital education and training to address the skills gap. The study concludes that the adoption of artificial intelligence (AI) technologies offers significant benefits while presenting notable challenges and both the public and private sectors acknowledge the importance of collaboration in developing applications that facilitate information exchange and support strategic decision-making.