Chapter 2: The Impact of Artificial Intelligence on Economic Sustainability in Palestine

The integration of artificial intelligence (AI) into Palestine’s economic landscape is a growing trend, showing potential across sectors like education, finance, and insurance. Despite the region’s political instability and economic constraints, AI could enhance productivity, innovation, and competitive advantage within Palestinian industries. Key areas of focus include labor market adaptation, where reskilling is necessary, and e-commerce, banking, and customer service, where AI-driven technologies are transforming operational efficiency. However, significant challenges persist, such as the lack of digital infrastructure, limited access to high-speed internet, and a shortage of educational resources. Addressing these infrastructural, political, and educational barriers will be crucial to unlocking AI’s full potential for sustainable economic development in Palestine.