This study examines the potential implications and significance of Artificial Intelligence (AI) within the realm of public auditing, specifically focusing on Romania’s public administration sector. With AI being recognized as a transformative technology, its capacity to augment the efficiency and effectiveness of audits is becoming increasingly acknowledged. AI-based tools are anticipated to enhance transparency, safeguard financial records, improve operational efficiency, and mitigate fraud risk through the automation of routine processes and the provision of real-time analytical insights. While AI holds great promise for public audits, especially in handling decentralized data, the paper identifies major challenges hindering its diffusion in Romania, which are incomplete development of IT infrastructure, insufficient investment, and an inadequate regulatory framework. Other interoperability issues between the AI systems and those already existing for serving public purposes further complicate AI integration. They also voiced concerns about job security and the environmental impact due to high energy consumption and e-waste generation by AI. The study concludes that if AI is to achieve its full potential and transform auditing in the public sector, substantial infrastructure investments, regulatory adjustments, and greening approaches will be needed. Furthermore, auditors must be included in continuous professional development to ensure that artificial intelligence is utilized to complement rather than replace human capability.