V3I7P31

The Role of Artificial Intelligence in Socio-Economic Growth and Development

Divyansh Mishra¹, Rajesh Kumar Mishra^2*, Rekha Agarwal³

Abstract

Artificial intelligence (AI) has moved from a niche computational discipline to a general-purpose technology reshaping production, labor markets, public services, and social welfare across the globe. This expanded paper synthesizes current evidence on the socio-economic role of AI, examining its contribution to productivity and gross domestic product (GDP), its disruptive and generative effects on employment, its influence on inequality within and between nations, and its implications for education, healthcare, agriculture, financial inclusion, and governance. Drawing on projections from the International Monetary Fund, World Bank, International Labour Organization, PwC, McKinsey, Goldman Sachs, IDC, and the Federal Reserve Bank of St. Louis, the paper estimates that AI could add between roughly thirteen and twenty trillion dollars to global output by 2030, while simultaneously warning that these gains are unevenly distributed, concentrated among a small number of technologically advanced economies and large firms. Six original figures illustrate comparative GDP forecasts, regional uplift, labor market churn, the global usage divide, investment trends, and sectoral value capture. The paper argues that AI’s net socio-economic effect is not predetermined by the technology itself but by the policy choices, infrastructure investments, and institutional frameworks that accompany its diffusion, and it closes with an expanded set of policy recommendations and illustrative country case studies aimed at broadening access, managing labor transitions, and ensuring that AI-driven growth translates into inclusive human development rather than deepened global divergence.

Keywords:

Artificial Intelligence, Economic Growth, Productivity, Labor Markets, Inequality, Digital Divide, Sustainable Development, Total Factor Productivity