The development of artificial intelligence (AI) technology has had a significant impact on the architecture of the global economy. Emerging market economies are increasingly adopting AI technology to improve productivity, competitiveness, and innovation. However, the distributional impact of AI technology is yet to be investigated. This paper examines the impact of the adoption of AI technology on income inequality in emerging market economies from 2020 to 2024. This paper employs panel data analysis and fixed-effects models with robust standard errors to examine the impact of the adoption of AI technology on income inequality and whether higher education and financial system development can moderate this relationship. The results of this paper show that the adoption of AI technology results in an increase in income inequality in the short term. However, higher human capital and financial system development can moderate this relationship. The results of this paper show that technological development does not necessarily result in inclusive growth.
Keywords : Artificial Intelligence (AI), Income Inequality, Developing countries, Human Capital, Financial Development
Author : Ediga Ravindra Goud, Lavudya Bablu, Sagar Mekala
Title : Artificial Intelligence and Income Inequality in Developing Economies: The Moderating Role of Human Capital and Financial Development
Volume/Issue : 2026;03(05)
Page No : 1-8
