Artificial intelligence is one of the important parts of Industrial Revolution 4.0 which has huge potential in public service because it can accelerate processes, automate user tasks, and reduce the number of errors. Not only that, but AI could also give $366 billion to Indonesia's GDP in 2030. In Indonesia, the implementation of AI in public services-known as e-government-is carried out with the application of information technology. Thus, the objective of this article is to explain the implementation of AI in Indonesia, especially in public services. This article used the qualitative research method with a literature review design. In examining the materials related to the topic, the authors more focus on secondary data in the form of journal articles, online articles, or government documents. This article showed a result that there are several challenges in AI development in Indonesia, including an unsupportive environment, lack of awareness and readiness among Indonesian people to use AI technology, inadequate human resources, and poor information and communication technology infrastructures. Besides that, Indonesia is still depending on imported technology and data misuse happened. To cope with these challenges, Indonesia has a plan to use AI technology in several priority issues, such as health, finance, defense, education, tourism, as well as food and biotech. Indonesia has invested heavily in media, telecommunications, and information technology. AI can be applied in the help desk in the service unit, analysis of service complaints, directing complaints to the intended agency, and even answering complaints. Furthermore, Indonesia has succeeded in integrating the government system as a database in the implementation of e-government. Its implementation also give a positive impact on local government performance, particularly in four aspects, namely costs, budget, time, and human resources. These four aspects become more efficient and effective in terms of assurance, infrastructure, and employment, so the community needs can be responded-and even fulfilled. The Indonesian government needs a regulatory framework that directly supports the requirements and implementation of e-government technology.