The Significance of Artficial Intelligence in Informal Sectors and its Influence on Social Economics and New Employment Opportunities

Abstract

Artificial Intelligence (AI) is progressively becoming integral to modern retail, driving efficiency, personalization, and sustainability. By optimizing supply chains and demand forecasting, engagement while lowering costs. However, this innovation also transforms labor markets: routine and low-skilled retail jobs are under pressure from automation, while there is an increasing demand for AI-complementary skills such as data analysis, digital literacy, and human-centric roles. In highskilled segments, AI enhances productivity and wages, although it poses a risk of widening beyond individual retailers, reshaping global value chains, improving productivity, and challenging equity in both developed and developing areas. This paper presents the growth of informal sector in India, with AI that facilitates formalization and social security while reinforcing digital infrastructure. These initiatives can assist informal workers in achieving more stable incomes, better living conditions, and increased employment opportunities in the AI-driven future.