This research paper investigates about the role of Artificial Intelligence in transforming modern  economies by enhancing productivity and innovation. SDG 10 focuses on Reduced Inequalities.  The potential of AI to reduce the inequality and promoting inclusive economic growth is highly  important in a changing world order. It has been observed that AI can help to improve access to  education, healthcare, and digital services. It also improves the status of businesses and boosts  economic expansion leading to improved living standards. To achieve the SDG 10 goals  correlation of income inequality and capability of AI to overcome it must be understood. To reflect  upon the distribution of income in a population Gini coefficient is used as an economic perspective.  The inclusivity of AI to reduce inequality by promoting productivity growth supporting innovation  and enabling various government policies is discussed. To decrease the gap between developed  and under-developed countries AI helps to access digital markets and financial systems. In certain  situations, AI can increase inequality. Workers who are not equipped with necessary skills may be  replaced due to automation. The gap between developed and underdeveloped countries may further  widen due to unequal access to technology and digital infrastructure. To ensure AI’s role to  enhance inclusive economic growth proper government policies, investment in education and skill  development are required. With proper implementation of AI’s role in reducing inequality the  goals of SDG 10 can be achieved which will eventually lead to Sustainable Economic  Development.