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ackground: The swift assimilation of Artificial Intelligence (AI) across multiple industries is altering the worldwide economic terrain. Unprecedented opportunities and difficulties are brought about by this revolutionary technology, which has an impact on innovation, trade, labor markets, and security. Objective: The goal of this study is to thoroughly investigate the economic effects of AI by exploring how it may affect labor markets, innovation, trade internationally, and security. The goal is to offer insights that support strategic decision-making and policy formation by examining current trends, opportunities, and difficulties. Results: The research highlights the dual character of artificial intelligence's influence, highlighting both its potential to spur economic expansion and its drawbacks, including the loss of jobs, a lack of standards, and security issues. The study highlights how crucial cooperation is to overcoming these obstacles and realizing AI's full potential. Conclusion: The balancing opportunities and risks becomes critical as AI continues to change the economic landscape. The report promotes proactive steps including ethical AI design guidelines, ongoing worker retraining, and flexible regulatory strategies. As we shape an AI future that puts inclusion, creativity, and responsible governance first, collaboration emerges as a key theme.