This study investigates the integration of behavioral insights into digital governance, focusing on the psychological factors that elucidate the motivations behind policy formulation and individual actions. It is evident that governments are increasingly recognizing the significance of behavioral research in enhancing decision-making efficiency and fostering citizen engagement. Nonetheless, the sophisticated capabilities provided by digital governance tools, such as AI-driven platforms and machine learning algorithms, introduce critical considerations regarding their ethical implications and overall effectiveness. Employing a qualitative methodology, this research will analyze existing literature on the influence of behavioral insights in public policy formation through both descriptive and analytical lenses. The descriptive component aims to delineate the various theories and frameworks related to digital governance and behavioral insights, while the analytical aspect will evaluate the application of these insights in actual policy development that incorporates artificial intelligence. The study concludes that Digital Psychological Policies, particularly those that utilize Digital Nudges, hold significant potential for enhancing public administration by aligning decision-making environments with human psychological tendencies. In the continuous evolution of digital governance, such policies are poised to play a crucial role in establishing more effective, transparent, and collaborative governance systems.