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Artificial Intelligence (AI) and Economic Diversification: A Cross-Sectional Analysis

In: Proceedings of the Global Conference on Economic Diversification 2024

Author

Listed:
  • Noha Ghazy

    (German International University (Cairo), Faculty of Economics and Business Administration)

Abstract

This paper aims to examine the importance of Artificial intelligence (AI) in fostering Economic Diversification by utilizing the Global AI Index for the former. Meanwhile, for the later, the Economic Diversification Index and its sub-indices, namely: Revenue Diversification, Output Diversification, and Trade Diversification were used for a cross-sectional sample of 47 countries. The results demonstrated a significant positive relationship between AI and Economic Diversification in general, and Output and Trade diversification in specific. This triggered further investigation to how policy makers could nurture AI to stimulate higher Trade and Output diversification. The results showed that in drafting AI policies for the aim of higher trade and output diversification, the main focus should be directed towards AI related Talent, the operating environment, and Research & Development in AI.

Suggested Citation

  • Noha Ghazy, 2026. "Artificial Intelligence (AI) and Economic Diversification: A Cross-Sectional Analysis," Springer Proceedings in Business and Economics, in: Keertana Subramani & Hamid Saeed & Fadi Salem (ed.), Proceedings of the Global Conference on Economic Diversification 2024, chapter 0, pages 187-206, Springer.
    • Handle: RePEc:spr:prbchp:978-981-95-2022-0_9
    DOI: 10.1007/978-981-95-2022-0_9
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