AI presents immense potential in addressing the complex challenges of developmental economics, particularly in the realms of financial inclusion and poverty alleviation. This abstract explores the opportunities and challenges associated with integrating AI solutions in these critical areas. Financial inclusion, essential for sustainable development, remains hampered by barriers such as limited access to banking services, socioeconomic disparities, and regulatory constraints. AI offers innovative approaches through data analytics and prediction models, enabling tailored financial services, risk assessment, and personalized interventions. However, the implementation of AI solutions poses significant challenges, including concerns regarding data privacy, ethical implications such as algorithmic bias, and accessibility issues in underserved regions. Through case studies and best practices, lessons can be gleaned to inform future initiatives, emphasizing the importance of adaptable policy frameworks, collaboration, and impact assessment. Looking ahead, emerging AI technologies like blockchain and enhanced regulatory measures hold promise, necessitating cross-sector partnerships and a concerted effort to harness AI's transformative potential for sustainable development and inclusive growth. Keywords: Developmental Economics, Financial Inclusion, Poverty Alleviation, AI Solutions, Challenges, Opportunities.
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