The impact of artificial intelligence (AI) on employment and economic growth in BRICS: Does the moderating role of governance Matter?

01 December 2025 | 10:00 Latest Publications

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The impact of artificial intelligence (AI) on employment and economic growth in BRICS: Does the moderating role of governance Matter?
Authors: Charles Shaaba Saba, Nicholas Ngepah
Journal: Research in Globalization
Volume & Issue: Volume 8
Published: June 2024

This article examines the role of artificial intelligence (AI) in promoting employment and economic growth in BRICS countries—Brazil, Russia, India, China, and South Africa—between 2012 and 2022, with a focus on the moderating effects of governance. Using the Cross-Sectional Augmented Autoregressive Distributed Lag (CS-ARDL) technique, the study finds a long-run equilibrium relationship among AI, governance, employment, and growth. Results indicate that AI and overall governance significantly and positively influence economic growth, while their interaction with governance dimensions such as political, institutional, and economic governance produces mixed effects on both growth and employment.

The findings highlight the importance of integrating AI into governance systems to maximize benefits for employment and economic performance. Policies should address ethical considerations, capacity building, and public engagement to ensure AI adoption supports sustainable employment. The study also emphasizes that governance quality plays a crucial role in mediating AI’s impact, suggesting that careful alignment of AI strategies with governance practices is necessary.

For policymakers, the research recommends fostering AI-friendly governance environments, promoting investment in AI technologies, and implementing robust monitoring mechanisms. Enhancing cross-dimensional coordination among governance indicators can mitigate potential negative consequences and optimize AI’s contributions to job creation and economic development in BRICS nations. The article provides evidence-based guidance for strategic AI integration within governance structures to support the Sustainable Development Goals of productive employment and inclusive growth.