ARTIFICIAL INTELLIGENCE AND THE CONTEMPORARY ECONOMY: A SOCIO- ECONOMIC STUDY OF DEVELOPMENT, JOBS, AND INEQUALITY

Artificial Intelligence (AI) is reshaping the global economy by boosting productivity, improving
resource utilization, and redefining labour markets. Although AI-powered automation enhances
efficiency, it also brings challenges such as job losses, wage inequality, and broader economic
disparities. This study investigates the economic effects of AI, with emphasis on its influence on
industrial automation, financial systems, and innovation-led growth. It also explores the shifts in
labour markets, including changes in employment patterns, the rising need for new skill sets, and the
impact on income distribution. By comparing AI adoption in advanced and developing nations, the
research evaluates policy measures aimed at reducing inequality. The results highlight the importance
of forward-looking policies, large-scale reskilling initiatives, and flexible regulatory frameworks to
promote inclusive and balanced growth in the age of AI.