Digital Transformation in Public Sector Governance: A Decade in Review

Abstract

The last decade has witnessed a seismic shift in the operational paradigms of public administration, driven by the relentless pace of digital transformation. This literature review provides a comprehensive analysis of the evolution of e-government from 2015 to 2025, charting the trajectory from static information dissemination to the deployment of sophisticated, AI-driven governance ecosystems. By synthesizing recent scholarly discourse, this paper identifies the core mechanisms that have enabled governments to transition from reactive bureaucracies to proactive, data-centric service providers. The review critically examines the "citizen-as-customer" model, the rise of algorithmic decision-making, and the integration of interoperable data architectures. Furthermore, it scrutinizes the persistent and emerging challenges that threaten to undermine these technological dividends: specifically, the erosion of data privacy, the widening digital divide that exacerbates social inequality, and the escalating threat landscape of cybersecurity. Through a structured analysis of fifteen key sources, this paper argues that while digital tools have exponentially increased administrative efficiency, they have simultaneously introduced complex ethical and structural risks that require a reimagined framework of digital governance. The paper concludes by outlining an agenda for future research, emphasizing the need for "human-in-the-loop" AI systems and resilient infrastructure capable of withstanding the next generation of cyber threats.