Abstract

The incorporation of artificial intelligence (AI) in different industries has generated significant curiosity about its potential influence on economic expansion. This study investigates the correlation between AI advancement and economic expansion in BRICS nations from 2000 to 2024. Initial analysis suggests a strong and meaningful correlation between AI patents and economic expansion in BRICS nations. We use different econometric models such as fixed effects, generalized method of moments (GMM), and Anderson-Hsiao (AH) estimates to ensure the reliability of the results. The findings repeatedly demonstrate that the number of AI patents per million individuals is a robust indicator of the rate of growth in real GDP per capita. In addition, the analysis reveals that gross capital formation, government expenditure, and trade openness have a considerable impact on economic growth. However, population growth and inflation have varied impacts on economic growth.

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