THE ROLE OF INSURANCE AND ARTIFICIAL INTELLIGENCE IN REDUCING RURAL POVERTY. A Path Toward Financial Resilience and an Inclusive Intelligent Society

Rural poverty remains a persistent and multidimensional challenge, particularly in developing economies such as Albania. It is associated not only with low-income levels, but also with structural constraints, demographic changes, limited access to financial
instruments, and high exposure to external shocks. This study explores the role of insurance and artificial intelligence (AI) in enhancing financial resilience and reducing vulnerability in rural areas. Insurance serves as a fundamental mechanism for risk transfer and income stabilization, while AI introduces new capabilities for data-driven decisionmaking, improved risk assessment, and more efficient service delivery. The integration of these two elements creates opportunities for expanding financial inclusion and developing more adaptive and accessible insurance models, particularly for rural populations. Using a qualitative and analytical approach, the study combines theoretical insights with practical considerations, emphasizing the importance of aligning technological innovation with local socio-economic conditions. The findings suggest that while insurance and AI have
significant potential to reduce rural poverty, their effectiveness depends on supporting factors such as digital infrastructure, institutional capacity, and financial literacy. The study concludes that sustainable poverty reduction requires a holistic and integrated strategy, combining financial tools, technological advancement, and policy interventions to create long-term economic resilience and inclusive development.