Towards Smart, Economic Performance and Sustainable Monetary Policy: The Role of AI and FinTech in G7 Economies

The present study investigates the influence of artificial intelligence, financial technology, economic performance, monetary policy, financial development, and governance quality on the growth of G7 countries during the study period (2000–2024) using the Method of Moments Quantile Regression (MMQR). The studied variables have different effects on prices, as indicated by the study’s findings and inferences. The regime does not exhibit static behavior; a change at one level implies changes in other variables as well. Such situations suggest that every economy is a component of the same system, in which technology concerns financial functions, the rules of the game, and enterprise quality. MMQR results show pronounced heterogeneity across monetary policy regimes: artificial intelligence has a positive and significant effect at lower quantiles (τ = 0.10–0.25) but becomes insignificant at higher quantiles, while economic performance remains positive across all quantiles, with effects strengthening at the upper tail (τ = 0.75–0.90). Financial technology and financial development show increasing positive effects at higher quantiles, whereas governance quality turns negative and significant at τ = 0.90, indicating institutional rigidity in advanced financial systems. The MMQR results further indicate that the effects of AI, FinTech, financial evolution, governance quality and economic performance on monetary policy improve across higher quantiles.