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Does artificial intelligence help in improving human capital based educational development? Evidence from 29 countries

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  • Tian, Jingyi
  • Zhang, Yifeng

Abstract

This study investigates how artificial intelligence (AI) influences human capital-based educational development (HCBED) across 29 countries from 2017 to 2021. Our findings reveal four key insights: (1) There is a positive relationship between AI and HCBED. (2) The magnitude of AI’s impact on HCBED differs between developing and developed countries and more pronounced during the COVID-19 period than in non-COVID periods. (3) In addition to advancements in the education sector, AI developments in other fields can also contribute to improvements in HCBED. (4) The mechanism tests confirm that, on the one hand, AI enhances HCBED by intensifying wage inequality, thereby incentivizing individuals to acquire essential skills and education to remain competitive in future labor markets. On the other hand, AI could widen existing education disparities, ultimately hindering HCBED. This paper offers new evidence and policy suggestions on how societies can coexist with AI and leverage its capabilities to foster HCBED.

Suggested Citation

  • Tian, Jingyi & Zhang, Yifeng, 2025. "Does artificial intelligence help in improving human capital based educational development? Evidence from 29 countries," Technology in Society, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:teinso:v:83:y:2025:i:c:s0160791x25001940
    DOI: 10.1016/j.techsoc.2025.103004
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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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