IMPACT OF ARTIFICIAL INTELLIGENCE ON ECONOMIC GROWTH: EVIDENCE FROM EMERGING ECONOMIES

Abstract

Artificial Intelligence (AI) has emerged as a transformative general-purpose technology with significant implications for productivity, innovation, employment and economic growth. While advanced economies have traditionally dominated AI investment and infrastructure, emerging economies are increasingly adopting AI across manufacturing, financial services, agriculture, healthcare, information technology and public administration. The present study examines the relationship between AI adoption and economic growth in emerging economies, with particular emphasis on the channels of productivity, technological innovation, human capital and digital infrastructure. A quantitative panel-data framework is proposed using GDP growth as the dependent variable and AI adoption, AI investment, digital infrastructure, human capital and research and development expenditure as explanatory variables. The study proposes descriptive statistics, correlation analysis and panel regression to evaluate the relationship between AI and economic growth. The illustrative regression results indicate a positive association between AI adoption and economic growth, while digital infrastructure, human capital and R&D capacity appear to strengthen the growth-enhancing effects of AI. The study argues that AI does not automatically generate inclusive economic growth; rather, its benefits depend upon complementary investments in skills, digital infrastructure, innovation ecosystems and appropriate regulatory institutions. The findings have important implications for emerging economies seeking to use AI as an instrument for productivity enhancement and sustainable economic development. Keywords: Artificial Intelligence, Economic Growth, Emerging Economies, AI Adoption, Productivity, Human Capital, Digital Infrastructure, Innovation