Harnessing RPA for digital transformation and cost optimization in government IT: A strategic review of challenges, benefits, and operational impact

operations, cost savings, and improved service delivery. The following review discusses increasing RPA uptake within public sector organizations, emphasizing how it can be utilized for cost optimization, efficiency, and digital transformation. Through the automation of mundane administrative functions, government agencies can realize substantial savings in labor costs, reduce errors, and facilitate better regulatory compliance. Despite such benefits, widespread use is being restrained by issues like resistance from employees, compatibility with old systems, cybersecurity threats, and the expense of initial investments. This research discusses the important mitigation measures and shows real-world examples illustrating the influence of RPA on performance at the operations level. Additionally, the research emphasizes the imperative position of AI-powered automation in optimizing decision-making, scalability, and service quality for government IT. Progress toward AI integration and hybrid cloud deployment in the future will continue to fuel RPA development as it becomes a linchpin for digital governance and public sector transformation.