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The Impact of Artificial Intelligence on the Urban-Rural Income Gap in China

In: Proceedings of the 2025 4th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2025)

Author

Listed:
  • Yong Wang

    (The University of New South Wales, Master of business analyst)

Abstract

This paper analyses data from 2010 to 2023 in China to create a regression model, supported by empirical evidence, assessing the impact of artificial intelligence on the urban-rural income gap. The methodology integrates regression analysis with actual growth rate data of the income gap to improve the accuracy of the results. The model uses the penetration rates of manufacturing robots and agricultural technology as independent variables to evaluate urban and rural income levels, respectively. Research suggests that artificial intelligence may reduce income levels for urban residents, worsening income inequality, while potentially increasing rural incomes. This could slow the growth of the urban-rural income gap in China. Additionally, the impact of AI on this disparity may stem from the digital economy’s development and vary across different regional economies. The article advises the Chinese government to enhance trade unions to boost wages for low-skilled workers and to offer retraining and reemployment opportunities to counter the negative impacts of artificial intelligence. The Chinese government should continue to promote agricultural technology and AI products to support the sustainable development of its rural economy.

Suggested Citation

  • Yong Wang, 2025. "The Impact of Artificial Intelligence on the Urban-Rural Income Gap in China," Advances in Economics, Business and Management Research, in: Qihui Chen & Nazrul Islam & Zulkiflee bin Mohamed & Yahua Xu (ed.), Proceedings of the 2025 4th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2025), pages 41-48, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-916-2_6
    DOI: 10.2991/978-94-6463-916-2_6
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