Integrating Artificial Intelligence into Life Expectancy Model: An Analysis of OECD Countries

Abstract

The study attempted to incorporate Artificial Intelligence into the life expectancy model utilizing the Grossman model and data of OECD nations with significant AI investment. In contrast to conventional methods that concentrate on traditional health determinants only, the current study presents a new model that looks at how AI investments affect health outcomes. The empirical examination of AI investment and its interaction with government effectiveness and internet usage in the healthcare industry, which has not yet been covered in the literature, makes this study distinctive. RGS is used for mapping comparing 2012 with 2022 in terms of AI investment. The Generalized Methods of Moment (GMM) is used for data analysis. GMM is a flexible approach for modelling economic relationships handling heteroscedasticity, endogeneity, and leveraging moment conditions for reliable and accurate results. This study found that while out-of-pocket expenditures and GDP per capita have a positive but non-significant effect, AI investment initially negatively impacts longevity due to transitional costs. However, life expectancy significantly increases when investment in AI is combined with governance and internet usage, implying the need for robust governance. Findings highlight the importance of policies promoting digital inclusion and innovation in the health sector. Digital adaptation and a strong bond between investment in AI and the use of the internet will ultimately lengthen life expectancy. Policymakers have to focus on privacy, and data security and adopt regulatory frameworks to promote digital innovation in the health sector. Government should adopt strategies for the promotion of digital health innovation by funding AI, to enhance internet accessibility and better institutional efficacy.