Artificial Intelligence and Economic Development: Opportunities and Challenges

Abstract

Artificial Intelligence (AI) has emerged as one of the most transformative technologies of the 21st century, significantly influencing global economic development. AI enhances productivity, drives innovation, improves governance, and creates new employment opportunities. However, it also introduces serious challenges such as job displacement, inequality, ethical concerns, and regulatory complexities. This paper examines the historical evolution of AI, analyzes its economic opportunities and risks, presents sector-wise impacts, and proposes policy measures to ensure inclusive and sustainable growth. The study concludes that balanced governance, investment in human capital, and ethical AI frameworks are essential for maximizing benefits while minimizing risks.