Abstract

Artificial Intelligence (AI) has emerged as a revolutionary tool in the study of economics. This paper explains the concept, characteristics and different types of AI, including machine learning, deep learning and data analytics. It examines the use of AI in economic data analysis, forecasting, policy formulation, financial services, agriculture, production management, stock market analysis and consumer behaviour analysis. AI can help policymakers analyse large volumes of economic data and make faster and more accurate decisions. The study also discusses the role of AI in India through the Digital India initiative and its applications in government programmes and economic activities. At the same time, challenges related to privacy, unemployment, lack of skills, ethical concerns and the absence of a clear regulatory framework are highlighted. The paper concludes that responsible and transparent use of AI can contribute significantly to India's economic development.