The Economic Impact of Artificial Intelligence Is Also in the Spotlight

The rapid development of artificial intelligence technologies is creating new opportunities in the global economy while also bringing about changes in the labour market, investment environment and business models. In Azerbaijan, the development of the digital economy and the application of artificial intelligence across various sectors are also among the priority areas of economic policy.

Azerbaijan’s Artificial Intelligence Strategy for 2025–2028 envisages the development of this field, the strengthening of skilled human resources and the application of artificial intelligence technologies in the economy. In addition, the Digital Economy Development Strategy for 2026–2029 aims to expand digital infrastructure, promote innovation and enhance the competitiveness of the economy.

One of the main ways artificial intelligence affects the economy is by increasing labour productivity. These technologies make it possible to analyse data, prepare documents, provide customer services and automate a range of repetitive tasks. As a result, businesses can reduce the time and operating costs required for their activities and use resources more efficiently. According to analyses by the Organisation for Economic Co-operation and Development (OECD), artificial intelligence has the potential to positively affect productivity and per capita income. However, the results depend on how widely and effectively the technology is adopted.

For Azerbaijan’s economy, the application of artificial intelligence could also contribute to the development of the non-oil sector. Potential applications of this technology include monitoring agricultural productivity, optimising routes in logistics and transport, assessing risks in the banking sector, forecasting demand in retail and improving public services. In particular, artificial intelligence is important for small and medium-sized enterprises as a means of optimising operations and expanding opportunities to access new markets.

At the same time, the spread of this technology poses certain challenges for the labour market. The automation of some tasks may change demand for particular occupations and groups of workers. Therefore, developing digital skills, retraining employees and adapting educational programmes to the new requirements of the labour market are essential. Expanding access to technology is also important to ensure that the economic benefits of artificial intelligence reach a broad section of the population.

Another important issue is the need for investment and infrastructure. The implementation of artificial intelligence systems requires high-quality databases, reliable digital infrastructure, cybersecurity and qualified specialists. The effectiveness of investments in these areas should be assessed based on the actual economic outcomes of the solutions implemented. At the same time, the protection of personal data, the reliability of algorithms and the management of technological risks must also be addressed.

Thus, artificial intelligence creates opportunities to increase productivity, improve business processes and establish new areas of economic activity in Azerbaijan. Realising these opportunities will depend not only on the adoption of technology but also on investment in human capital, the development of digital infrastructure and responsible regulatory mechanisms.