The rapid growth of Artificial Intelligence (AI) and digital infrastructures is transforming social, economic, and governance systems in India. This study examines how AI, algorithmic governance, and digital technologies are reconfiguring patterns of social stratification and inequality. Using a qualitative descriptive research design and secondary data sources, the study reviews scholarly literature, policy reports, and digital economy publications related to AI, social inequality, and digital transformation. The findings indicate that expanding digital infrastructure and AI adoption have created new opportunities for economic participation, education, and public service access. However, significant disparities persist due to unequal access to digital technologies, digital literacy, and technological skills. The study also highlights the risks of algorithmic bias and social exclusion affecting marginalized populations based on class, caste, gender, and geographic location. It concludes that while AI can promote development and social mobility, inclusive digital policies, ethical AI governance, and improved digital literacy are essential to ensure equitable participation in India's emerging algorithmic society.
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