arXiv:2509.19497v1 Announce Type: cross Abstract: This research examines the role of Generative Artificial Intelligence (AI) in enhancing citizen engagement in participatory budgeting. In response to challenges like declining civic participation and increased societal polarization, the study explores how online political participation can strengthen democracy and promote social equity. By integrating Generative AI into public consultation platforms, the research aims to improve citizen proposal formulation and foster effective dialogue between citizens and government. It assesses the capacities governments need to implement AI-enhanced participatory tools, considering technological dependencies and vulnerabilities. Analyzing technological structures, actors, interests, and strategies, the study contributes to understanding how technological advancements can reshape participatory institutions to better facilitate citizen involvement. Ultimately, the research highlights how Generative AI can transform participatory institutions, promoting inclusive, democratic engagement and empowering citizens.