ARTIFICIAL INTELLIGENCE–DRIVEN DIGITAL INNOVATION AND INCLUSIVE ECONOMIC GROWTH IN NIGERIA.

This study examines the role of artificial intelligence (AI) driven digital innovation in promoting inclusive economic growth in Nigeria using a hybrid empirical computational approach. Econometric analysis and machine learning techniques were integrated to assess the effects of AI adoption, digital innovation, human capital, infrastructure, and policy frameworks on inclusive economic growth. Data were obtained from secondary institutional sources and primary surveys of stakeholders in FinTech, e-governance, and digital entrepreneurship. Descriptive results show moderate-to-high AI adoption (M = 3.84) and inclusive economic growth (M = 3.76), while infrastructure remains comparatively weak (M = 3.42). Regression findings indicate that all variables significantly and positively influence inclusive economic growth, with AI adoption as the strongest predictor (β = 0.31, p < 0.001), followed by digital innovation (β = 0.27), human capital (β = 0.22), infrastructure (β = 0.19), and policy framework (β = 0.16), with strong explanatory power (R² = 0.66). Machine learning results reveal that XGBoost outperforms Random Forest and Support Vector Machine (SVM), achieving the highest predictive accuracy (R² = 0.74). Constraint analysis identifies broadband infrastructure (M = 4.5) and digital skills gaps (M = 4.3) as the most critical barriers to AI adoption. The study concludes that AI-driven digital innovation significantly enhances inclusive economic growth in Nigeria, but its impact depends on complementary investments in infrastructure, human capital, and effective regulatory frameworks.