How Artificial Intelligence Enhances Economic Growth and Development

Abstract: Artificial Intelligence (AI) is reshaping the global economy by introducing innovative solutions to traditional problems, enhancing productivity, and creating new markets. This paper explores how AI contributes to economic growth through applications in diverse industries such as healthcare, finance, manufacturing, and logistics. It discusses AI's ability to drive decision-making, optimize resource allocation, and foster technological innovation. Additionally, the review considers labor market impacts, regulatory challenges, and ethical concerns, offering strategies for inclusive and sustainable AI-driven economic development. While the potential for AI is vast, navigating its risks requires collaboration between governments, businesses, and societies.