Document Type : Research Paper
Authors
1 department of economic\ayatollah borujerdi university
2 Department of Economics, Faculty of Humanities, Ayatollah Boroujerdi University, Boroujerd, Iran Zagros Data Science Research Group, Ayatollah Boroujerdi University, Boroujerd, Iran
Abstract
In recent years, artificial intelligence (AI) has become one of the principal drivers of economic and social change worldwide, yet concerns have been raised about its social and economic consequences—particularly with respect to income distribution and inequality. AI can play a dual role: on the one hand, it may boost productivity and create new employment opportunities; on the other hand, because it is capital-intensive and requires specific skills, the returns to AI may accrue disproportionately to particular groups and thereby exacerbate inequality. This study examines the effect of AI investment on income inequality in countries that are at the forefront of AI deployment. Using panel quantile regression on a sample of 20 countries leading in AI investment over the period 2017–2023, the analysis reveals that the impact of such investment is heterogeneous and stage-dependent. In the early stages of technological diffusion, higher-income groups benefit disproportionately and inequality increases; however, as AI adoption broadens into smaller firms and the services sector, this pattern reverses and inequality declines. The findings suggest that to harness AI’s potential for reducing inequality, complementary policies are necessary—among them large-scale skills training, expansion of public health services, support for small enterprises, and transparent regulation of data ownership and market competition—so that AI contributes to inclusive and sustainable growth.
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