Artificial Intelligence and Poverty Reduction: How AI Applications and Digital Solutions Can Help, particularly in Developing Countries

Artificial Intelligence (AI) is seen as a new remedy to address pressing global challenges of poverty and human wellbeing through technology interventions such as in health, education, agriculture, finance, and governance. While digital connectivity grows, internet diffusion increases, and data availability proliferates, AI offers new tools to eradicate poverty with innovative and scalable solutions. These solutions will take various forms in healthcare service delivery, personalized education and learning, climate-smart agriculture, inclusive financial services, and transparent governance. This chapter discusses the multiple applications of AI to reduce poverty and enhance wellbeing, particularly in developing countries. The chapter offers an analysis of the potential and risks of using AI to promote inclusive and equitable development by drawing from recent literature while discussing the socio-ethical, technical, and policy impediments. The chapter emphasizes that the development and deployment of AI need to be inclusive and human-centered in relation to the SDGs so that technology benefits the human condition. From current literature, we draw upon issues that concern the potential of AI to ensure inclusive development as well as technical and policy considerations to be considered. Key policy recommendations and proposals are presented for governments, development agencies, and other stakeholders for AI-enabled inclusive poverty reduction and well-being.