The objects which matter in physics are Lie groups and not Lie algebras. Lie algebras approximate only infinitesimal group transformations and in quantum mechanics the finite and global properties of the transformations matter.
However, (considering quantum systems with a finite number of degrees of freedom), the spaces of quantum states are projective, as there is no physical meaning to the overall magnitudes and global phases of state vectors. Thus, symmetry groups act on the spaces of states via projective representations.
For a semisimple compact Lie group, a projective representation is a true representation of its (simply connected) universal covering. The representations of the universal covering group are in a $1-1$ correspondence with the representations of its Lie algebra (which is the same Lie algebra as the original group) . This is the reason why all representations of the group's Lie algebra can appear as realizations of symmetries in quantum systems.
May be the most famous case is the rotation group $SO(3)$, which can be parametrized by The Euler's angles. The true representations of the rotation groups are the integer spin representations. However, there are quantum systems in which the rotation symmetry is realized by means of the half-integer spin representation (such as the electron spin or a qubit). The half integer representations are only projective representations of the rotation group; however, they are true representations of its universal covering $SU(2)$. The representations of $SU(2)$ are in a $1-1$ correspondence to the representations of the isomorphic Lie algebras of both groups $\mathfrak{so}(3) \cong \mathfrak{su}(2)$.