The Impact of Social Media on Consumer Behaviour: Investigating How Social Media Platforms Shape Consumer Purchasing Decisions and Loyalty

Abstract

Artificial Intelligence (AI) is reshaping global economies, work environments, and how income is distributed. While AI has the potential to boost productivity and generate new employment opportunities contributing to higher incomes, broader access to goods and services, and overall economic expansion its widespread adoption also raises concerns about unequal income distribution, particularly in relation to job displacement. AI technologies tend to benefit highly skilled workers while potentially pushing low-skilled labour out of the job market. Recent research suggests that integrating AI into production and capital processes may widen inequality, as returns increasingly Favor capital over labour. However, under certain conditions, AI could help reduce disparities by supporting and enhancing the roles of less-skilled workers. The socioeconomic effects of AI depend on how its benefits are distributed between capital and labour, and on how effectively workers can adjust to evolving job demands. Disparities in digital infrastructure, education levels, technological access, and AI literacy further deepen the divide between the Global North and the Global South. In developing countries, AI adoption offers significant promise such as gains in productivity, better education and healthcare access, improved food security, financial inclusion, and modernized agriculture. Yet, without careful management, the uneven spread of AI could intensify existing inequalities. Therefore, the impact of AI on income inequality largely hinges on equitable access to resources and effective redistribution mechanisms. To address the adverse effects of AI-driven advancements, policy measures should focus on expanding educational opportunities, retraining workers, strengthening digital infrastructure, and implementing well-designed AI-related taxation. This study will examine the key opportunities and risks posed by artificial intelligence and explore essential policy actions that could help minimize its negative consequences on inequality.