Artificial Intelligence and Local Governments: the case of Strategic Performance Management Systems and Accountability.

Technological advances (from almost unlimited computer power to Artificial Intelligence-based systems) combined with managerial information systems may prove significantly valuable under two different areas. On the one hand, Business Intelligence and Business Analytics, the latter of which is a layer on which Artificial Intelligence commonly builds, may overcome an information overload, absence of cause-effect relationships and a lack of holistic views of the organization. On the other hand, they may improve accountability while also engaging different stakeholders. However, the diffusion of this approach, especially in the public sector and at a local level, is still both theoretically and practically in its infancy. Thus, this conceptual paper highlights the pivotal role of data-driven decision-making and data visualization in Local Governments, involving the points of view of both accounting scholars and an Artificial Intelligence practitioner. The literature review suggests how data analytics may allow the alignment between political programs, strategic goals and their implementation, fostering the integration between strategic and operational goals. Moreover, data analytics may increase accountability and support the managerial and political decision-making process, increasing their awareness. This paper calls for new models for public administration managerial decisionmaking, reporting, and organizational culture which encompass analytics, capable of simplifying data and amplifying its value.