AI-Driven Innovation and Socio-Economic Impact on the Marginalized Sector in the Mumbai Metropolitan Region

Abstract

Artificial Intelligence (AI) is transforming commercial, administrative, and socio-economic structures at an unprecedented pace. However, its impact on marginalized communities remains underexplored, particularly in urban conglomerates such as the Mumbai Metropolitan Region (MMR). This primary-data-based study investigates how AI-driven innovations influence the socio-economic conditions of the marginalized sector in MMR, with a focus on access to employment, income stability, digital inclusion, entrepreneurial opportunities, and perceived threats such as job displacement. A structured questionnaire was administered to 300 respondents from marginalized sectors including street vendors, gig workers, small traders, domestic workers, auto/taxi drivers, and informal laborers. Quantitative data was analysed using descriptive statistics, correlation, regression, and chi-square tests. The findings reveal that AI-driven innovations offer both opportunities—such as increased market access, improved financial inclusion, and better service efficiency—and challenges including fear of job loss, digital skill gaps, and unequal access to AI-enabled platforms. The study concludes with policy recommendations for inclusive AI adoption and capacity-building initiatives to integrate marginalized groups into the digital economy.