Abstract: Artificial Intelligence (AI) focuses on creating intelligent machines capable of performing different kind of jobs, thus influencing labour wages with its impact varying across types of economies and potentially widening wage disparities between skilled and unskilled workers. This paper investigates the impact of AI on the skilled-unskilled wage gap across diverse economies. Instrumental variable regression analysis is used on data across 163 countries for a period of 15 years. Categorizing the economies further into low-income, middle-income, and high-income groups, our findings reveal that AI penetration exacerbates wage gap in low and middle-income economies. In contrast, high-income economies remain relatively unaffected due to their pre-existing labour market conditions. Furthermore, GDP per capita, the proportion of elderly citizens, inflation, and unemployment rates play significant roles in influencing the wage gap. Keywords: Artificial Intelligence, Wage Gap, IV Panel Regression JEL Classification Number: O33, J31, C36