Digital technologies in the system of public finance and public procurement – risks and opportunities

The integration of digital technologies into public finance and procurement systems offers transformative potential for enhancing transparency, efficiency, and accountability in government operations. This article explores the opportunities and risks associated with the adoption of digital tools in the Republic of Uzbekistan —such as artificial intelligence (AI), and big data analytics—in the public finance and procurement sector. Key opportunities include streamlined financial management, reduced transaction costs, improved data accuracy, and enhanced fraud detection capabilities. However, the transition to digital systems also presents significant challenges and risks, including cybersecurity risks, potential data privacy concerns, and the need for substantial investment in infrastructure and skills development. Furthermore, rapid digitalization can create regulatory and ethical dilemmas related to automated decision-making and algorithmic transparency. Through an examination of case studies and emerging trends, this article provides insights into best practices for mitigating risks while maximizing the benefits of digital transformation in public finance and procurement. The findings aim to inform policymakers, technologists, and public finance professionals on building resilient, secure, and effective digital public finance systems.