This research analyzes the structural transformation of administrative discretion resulting from the integration of automated decision-making (ADM) systems and artificial intelligence (AI) in e-government and digital public administration. While e-government initiatives promise enhanced operational efficiency, standardized public service delivery, and reduced administrative overhead, the automated execution of executive authority introduces critical legal gaps in institutional accountability and algorithmic transparency. Employing a normative-juridical research design coupled with theory-guided qualitative analysis, this article evaluates how automated administrative decisions challenge foundational administrative law doctrines, specifically the legal duty to provide reasoned decisions, procedural due process, and judicial reviewability. The findings demonstrate that administrative discretion is no longer exercised primarily by frontline human bureaucrats in direct contact with citizens; instead, discretion is systematically codified upward into software architectures, data processing rules, and predictive models designed by system analysts and private software vendors. Furthermore, existing legal and regulatory frameworks struggle to hold public authorities accountable due to algorithmic opacity and distributed supply-chain liability across public and private domains. To safeguard administrative legality, democratic legitimacy, and public trust, this paper advocates for the institutionalization of technological due process, mandatory pre-deployment algorithmic impact assessments, statutory rights to meaningful explanation, and enforceable human-in-the-loop oversight mechanisms within digital government frameworks.