The impact of artificial intelligence on the economy of the developing countries.

Artificial intelligence (AI) is rapidly transforming economic structures worldwide, with particularly profound implications for developing countries. This article examines the multifaceted impact of AI on the economies of developing nations, focusing on productivity, labor markets, industrial development, and economic inequality. It analyzes how AI-driven technologies can enhance efficiency in key sectors such as agriculture, healthcare, manufacturing, and financial services, potentially accelerating economic growth and improving public service delivery. At the same time, the study highlights critical challenges, including job displacement in low- and medium-skilled occupations, widening digital divides, limited technological infrastructure, and gaps in human capital. The article further explores the role of policy, education, and international cooperation in shaping AI adoption outcomes, emphasizing the importance of inclusive strategies that align technological innovation with local development goals. By synthesizing existing empirical evidence and policy reports, the paper argues that while AI presents significant opportunities for economic advancement in developing countries, its benefits are not automatic. Effective governance, investment in skills development, and equitable access to technology are essential to ensure that AI contributes to sustainable and inclusive economic growth rather than exacerbating existing inequalities. The paper applied systematic literature review.