Abstract
This paper explores how Artificial Intelligence (AI) is poised to reshape economic development in developing countries. It examines AI's potential to enhance productivity, optimize resource allocation, and improve access to critical services like healthcare and education. Despite these opportunities, challenges such as technological infrastructure gaps and job displacement are significant. The paper emphasizes the need for tailored policy frameworks to harness AI's benefits while mitigating risks of widening inequalities or AI-poverty traps. By analyzing current economic trends and projections, the paper aims to provide insights into navigating AI adoption in developing economies, promoting sustainable growth and inclusive development in a rapidly evolving global landscape.