Article

Public management of sustainable finance: Digital transformation and legal challenges

Serhii Petrukha Nina Petrukha Ganna Ortina Ruslan Stuzhuk Dmytro Plakhotnii
Abstract

The purpose of the study was to analyse public administration strategies aimed at stimulating investment in a sustainable economy and to assess the possibilities of using artificial intelligence tools to improve the effectiveness of state supervision of financial markets. The paper examined public administration strategies focused on stimulating investment in a sustainable economy, and legal aspects of implementing intelligent systems in decision-making processes that contributed to ensuring financial security and stability of the financial system in the long term. In particular, attention was paid to the issues of transparency of algorithmic decisions, responsibility for the use of automated systems, and protection of financial and personal data in public financial management processes. The results of the study showed that the integration of digital technologies into the public financial management system significantly increased the effectiveness of financial supervision, improved transparency of operations, and developed sustainable financial instruments. However, the successful implementation of these transformations required improving the regulatory framework and creating mechanisms for regulating the use of artificial intelligence in the financial sector. In addition, artificial intelligence, due to its ability to automate big data analysis and quickly identify risks, has significantly improved the effectiveness of financial regulation. This has created legal challenges, in particular, regarding the definition of responsibility for automated decisions. The results of the expert survey confirmed the importance of integrating digital technologies with legal guarantees in order to ensure the ethics and stability of financial markets. The practical significance of the study lies in the development of scientifically based approaches to the integration of digital technologies into the public financial management system to ensure financial stability, increase investment activity, and support the long-term development of a sustainable economy

Keywords

digital financial regulation; regulatory technologies; artificial intelligence solutions; sustainable economy; financial security

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Received 12.01.2026, Revised 15.04.2026, Accepted 28.05.2026 Published 25.06.2026

Retrieved from Volume 19, No. 1, 2026

Suggested citation

Petrukha, S., Petrukha, N., Ortina, G., Stuzhuk, R., & Plakhotnii, D. (2026). Public management of sustainable finance: Digital transformation and legal challenges. Democratic Governance, 19(1), 20-32. https://doi.org/10.56318/dg/1.2026.20

https://doi.org/10.56318/dg/1.2026.20

Pages 20-32

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