Artificial Intelligence Technology as an Anti-Poverty Policy: International Evidence and Lessons for Iran

Authors
Younes Nademi
Ramin Khochiani
Reza Maaboudi
Department of Economics, Faculty of Humanities, Ayatollah Boroujerdi University, Boroujerd, Iran
Abstract
Objective:Artificial Intelligence (AI), as an emerging and transformative technology, is still in its early stages of development, and many aspects—particularly its economic and social dimensions—remain underexplored. Given the critical importance of eliminating absolute poverty as the first of the United Nations Sustainable Development Goals (SDGs), the present study aims to investigate the effects of investment in artificial intelligence on poverty and identify the main channels through which this impact occurs in countries leading in AI technologies.

Materials and Methods: This study empirically employs panel data from 20 selected countries during the period 2017–2023 using the generalized method of moments (GMM). The main variables include investment in AI technologies as the explanatory variable, and both income-based and multidimensional poverty indicators as dependent variables. Additionally, the study analyzes the effects of control variables including economic growth, income inequality, health index, and human capital.

Results: Empirical results indicate that investment in AI technologies significantly reduces both income-based and multidimensional poverty. AI contributes to poverty alleviation by enhancing economic growth, improving agricultural productivity, enabling financial inclusion, facilitating access to educational and healthcare services, and increasing the precision of targeted subsidies. Furthermore, economic growth and improvements in health indices reduce poverty, whereas increased income inequality exacerbates poverty.

Conclusion:The study emphasizes the importance of investing in legal and technological infrastructure to effectively leverage the potential of artificial intelligence for poverty reduction. Accordingly, policymakers in developing countries, including Iran, could benefit from developing supportive policies and strengthening necessary infrastructure to harness AI capabilities for poverty alleviation and economic well-being.

Originality:This research is among the first comprehensive empirical studies to examine the impacts of investment in artificial intelligence on both income-based and multidimensional poverty, identifying key channels of impact within countries leading in AI technology. The findings provide valuable insights for formulating technology-driven anti-poverty policies.
Keywords
Artificial intelligence
Poverty
Dynamic Panel Method
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