AI'S DOUBLE-EDGED SWORD: STRIKING BALANCE BETWEENINNOVATION AND ECONOMIC INEQUALITY IN AZERBAIJAN

Abstract

This paper examines the dual impact of artificial intelligence on innovation and economic inequality, focusing on Azerbaijan. Through a comprehensive analysis of existing literature and case studies, it explores the transformative potential of AI in driving innovation across various sectors while exacerbating economic disparities. The research delves into Azerbaijan's efforts to embrace AI adoption and digital ransformation, highlighting the country's progress and challenges. Moreover, it discusses the implications of AI on employment and income inequality in Azerbaijan, drawing insights from global perspectives and best practices. The paper concludes by emphasizing the importance of policy interventions, such as investing in digital infrastructure, promoting education and reskilling programs, and fostering international collaboration, to ensure inclusive and ethical AI adoption. Ultimately, it underscores the need for a balanced approach that maximizes the benefits of AI while mitigating its adverse effects, thereby shaping a more equitable and sustainable future for Azerbaijan and beyond.