<b>Artificial Intelligence and Social Inequality: Who Benefits and Who is Left Behind?</b>

The introduction of Artificial Intelligence (AI) into different industries of the Pakistani economy has transformed the way different industries generate, manage, and provide services, yet has also demonstrated the inequalities in society. The paper examines the socio-economic impact of applying AI in Pakistan, the beneficiaries of AI-based transformations and the marginalized population. As the mixed-method analysis and the use of secondary data on national statistics and the qualitative interviews with IT professionals, teachers, and policymakers show, the study looks at the inequality in access, awareness, and the outcomes of the AI usage. The findings suggest that AI has a positive impact on the efficiency of the work in such spheres as finance, health care, and education, though it is an extremely positive phenomenon among urban elites and highly technologically developed layers of the population. Workers with low income, women, and communities residing in rural areas experience digital literacy and infrastructural access point barriers and algorithmic representation, which exacerbates the digital divide. Moreover, the systemic inequalities of employment and decision-making in the system are recreated with the help of algorithms and centralization of data. The following elements are identified as important in the inclusive use of AI by the study: education, policy frameworks, and just digital infrastructure. The study concludes that sustainable AI policy in Pakistan should be able to balance the innovation with social justice, where the technological gains are equally shared. This study presents both quantitative and qualitative narratives that can give evidence-based information to policymakers to address emerging inequalities in the era of AI.