Chapter 12: Unlocking the Interplay of Artificial Intelligence, Healthcare, Industrial Output, and Agriculture Productivity with Economic Development in BRICS Countries

The potential of artificial intelligence (AI) to spur a new wave of technological innovation and sustainable economic impairment through value-added and better healthcare has garnered a lot of attention from academics in recent years. This research explores the long- and short-term dynamics of AI investment, healthcare expenditure, agricultural productivity, and industry value-added on economic development of the BRICS countries (Brazil, Russia, India, China, and South Africa) between 2013 and 2023. Panel fully modified ordinary least squares (FMOLS) and dynamic OLS (DOLS) pooled methods validated the results of the pooled mean group auto-regressive distributed lag (PMG/ARDL) model, which demonstrate that healthcare, industry value-added, and agricultural output across the BRICS economies significantly improve economic prosperity over time, while AI investment shortens economic welfare. The PMG/ARDL results also showed that agricultural value-added and healthcare expenditure significantly absorbed economic welfare in the short run. Furthermore, the causality test indicated that these were homogeneously causing economic welfare and added industry value. The study also verifies that healthcare is a homogeneous consequence of AI investment, and economic development is a homogeneous cause of AI investment. Policymakers in the BRICS nations should encourage the development and use of AI in the healthcare and agricultural sectors by enacting unique rules that align with industry standards to promote economic well-being through AI investment and healthcare.