Applications of Artificial Intelligence in Economics

Artificial intelligence (AI) has appeared as a transformative power across different disciplines, including economics. The applications of AI in economics have radically changed the way data is analysed, policies are implemented, and conclusions are drawn. This paper, titled “Applications of Artificial Intelligence in Economics,” examines the multifaceted applications of AI in economic forecasting, financial markets, public policy, labour markets, consumer behaviour, and development economics. This study highlights how AI enhances decision-making efficiency, improves prediction accuracy, and supports evidence-based policymaking. Utilising secondary sources and conceptual analysis, the paper also discusses the limitations and ethical concerns associated with the adoption of AI in economic systems. The study concludes that while AI offers significant opportunities to improve economic outcomes, its responsible and inclusive implementation is crucial to ensure sustainable economic development. This paper argues that while AI improves productivity and decision-making powers, it also poses the risk of exacerbating inequalities without proper regulation. It concludes by emphasising the need for AI literacy among economists and the development of appropriate governance frameworks. Overall, AI represents both a transformative opportunity and a strategic challenge for the destiny of economic development.