Macroeconomic Effects of Artificial Intelligence on Emerging Economies: A study on Bangladesh

Abstract

Artificial intelligence (AI) has the potential of increasing economic growth substantially across the world. This paper explores the predicted potentials of AI on macroeconomic perspectives employing theoretical analysis and contextualizing Bangladesh. The study employs time series data to examine the effects of AI on labor market and productivity. The findings indicate that Bangladesh was yet to realize the expected economic merits though the integrated number of AI-induced industry robots has been insignificant. For AI to be effective in Bangladesh, the country shall adopt more AI-robots across the various sectors, mainly the manufacturing and service sectors. Besides, the country may complement the human labor force with AI labor as opposed to relying on only one as a source of labor.

Keywords: Artificial intelligence; Macroeconomic effects; Industry 4.0, Bangladesh.

JEL Classification: O40, J23, J24