Public Law analysis: This article discusses the transformative impact of Artificial Intelligence (AI) in the public sector, highlighting its role in improving administrative practices and policy-making across various domains such as social welfare, law enforcement, healthcare, and transportation. It addresses the legal and ethical challenges posed by AI, including concerns about human rights, privacy, accountability, and environmental impacts. The article examines the evolving regulatory frameworks in the EU and the UK, which aim to manage these challenges through risk-based regulation. It emphasises the need for public sector lawyers to understand these regulations and balance innovation with the protection of fundamental rights and transparency. Written by Erica Stanford, Crypto, digital asset and AI advisor at CMS.