The increasing adoption of artificial intelligence (AI) in the public sector has triggered important debates about its social, economic, and policy impacts. This chapter examines the responsible use of AI and its implications for public-sector employment, focusing on the importance of balancing automation with human oversight. Drawing on current literature and global case studies, it explores how responsible AI practices can enhance governance while mitigating risks such as job displacement and algorithmic bias. Central to this analysis is the emphasis on fairness, accountability, inclusivity, and transparency in AI implementation. The findings reveal that while nations like Canada, Singapore, and Estonia have successfully utilized AI to enhance public service efficiency and citizen interaction, examples from other countries highlight how insufficient oversight can erode trust and exacerbate inequalities. Biased algorithms in policing and welfare have sparked controversy, highlighting the need for human-centric governance, stakeholder inclusion, and ethical data management. The chapter also explores the socio-economic effects of irresponsible AI, such as widening inequality and workforce disruption, and proposes strategies to mitigate these risks. By engaging with critical perspectives on AI governance, it argues for adaptive policy frameworks aligned with societal values. Ultimately, the chapter advocates for evidence-based, inclusive policymaking that fosters responsible AI integration while upholding public trust and supporting long-term social and economic goals.