Artificial Intelligence (AI) is a technology that has significant impact on the economy and the people. AI entails development of machines and computer system that emulate human intelligence and develops algorithms that help with decision-making and predictions. The following paper entails a literature review analysis on the impact of AI on the economy and the people. The review of various peer-reviewed sources highlighted various themes on the impact of AI on the economy, which included productivity, labor market, and economic inequality. However, this review is specifically on the analysis of these reviewed sources that overall helps us understand the consequences and benefits of AI on the economy. The impact of AI on the people includes ethical concerns, language barrier and social interactions.