Artificial intelligence and wealth inequality: A comprehensive empirical exploration of socioeconomic implications

Abstract

This study introduces a global database on artificial intelligence (AI) capital stock and related AI indicators. Using the data constructed, we investigate the impact of AI and capital stock accumulation on wealth inequality, a dimension not extensively explored in the literature. This study contributes to the growing body of literature on the socioeconomic consequences of AI, with implications for scholars, policymakers, and corporate executives. An innovative database detailing AI capital stock is developed by incorporating data from various sources, including corporate reports, industry databases, and scholarly literature. This novel dataset, focusing on the US, the EU, and Japan from 1995 to 2020, is a critical resource for future investigations. The research methodology is centered on an extended Solow–Swan model, conceptualizing AI as a form of capital that can substitute for or complement traditional forms of labor. A panel-corrected standard errors model is used to analyze the data, accounting for potential cross-sectional dependence and heteroscedasticity. Our findings reveal a positive and statistically significant correlation between AI technology adoption, AI capital stock accumulation, and wealth disparity. The analysis further indicates a complex interaction between income and wealth disparities, suggesting a mutually reinforcing cycle. This study fills a significant gap in the existing literature by offering a novel perspective on the distributional impact of AI. Our results underscore the importance of considering the broader socioeconomic implications of AI, extending beyond considerations of immediate productivity and economic growth. This study offers valuable insights for policy formulation and business decision making, emphasizing the necessity of a comprehensive understanding of the influence of AI on wealth distribution.