Harnessing AI for Economic Forecasting: Navigating Rentier Economies Towards Diversification and Sustainable Growth: A Case Study of Iraq

This study ventures into the crossroads of Artificial Intelligence (AI) and economic development, employing advanced AI models for economic forecasting in Iraq, a quintessential rentier state. Harnessing OpenAI’s ChatGPT-4 and Google’s Gemini, it explores potential economic trajectories through rentier state theory and diversification strategies. The analysis reveals Iraq’s critical challenges due to its heavy dependence on oil revenues, socio-economic instability, and the sustainability of its bloated public sector. By generating various economic scenarios, the AI models highlight the urgent need for robust diversification strategies to mitigate oil dependency and public sector imbalances. The results underscore the socio-economic implications of economic stagnation and the potential benefits of strategic diversification. This study advocates integrating AI with traditional research methodologies to enhance economic forecasting and policy planning. It provides strategic insights into guiding Iraq toward a diversified and sustainable economic future, contributing to the broader discourse on economic development in resource-rich nations.