Artificial Intelligence, Inequality, and Economic Performance: An Empirical Investigation across Europe, USA, and China

Abstract In today’s fast-changing digital world, Artificial Intelligence (AI) is playing a key role in driving economic growth, boosting innovation, and reshaping global competitiveness. This paper analyzes the influence of Artificial Intelligence readiness on economic performance, proxied by GDP, for 36 countries: 34 European nations, the United States, and China. In this study, we explore through a regression model and correlation analysis how government preparation, technological infrastructure, data availability, and unemployment rates impact economic outcomes regarding AI deployment in 2024. The findings indicate that technological readiness has a favorable impact on GDP, however data and infrastructure present obstacles that could impede economic progress. The study examines the relationship between AI and income inequality, indicating a possibility for AI to mitigate inequality, however its effect on employment is ambiguous. The results highlight the significance of strategic investments in AI and technical infrastructure to promote inclusive economic growth and enhance economic performance.