This study examines the transformative potential of Artificial Intelligence (AI) in addressing economic challenges in Northeastern Nigeria, a region characterized by complex developmental hurdles including insurgency, poverty, and inadequate infrastructure. Through analysis of recent initiatives and policy frameworks, this paper investigates how AI technologies can catalyse economic growth across key sectors while identifying significant barriers to implementation. The research highlights promising developments in agricultural optimization, healthcare delivery, and educational advancement through AI integration, particularly noting the success of programs like Google’s collaboration with the Kaduna State Government and the establishment of the National Centre for Artificial Intelligence and Robotics (NCAIR). However, findings reveal critical challenges including a severe shortage of AI professionals (with only 3% of IT professionals specializing in AI), persistent infrastructure deficits, and linguistic barriers affecting technology adoption. The study proposes a comprehensive framework for addressing these limitations through enhanced AI education, strategic infrastructure development, and public-private partnerships. Our recommendations emphasize the importance of culturally sensitive implementation, suggesting that AI education in local languages and community-driven initiatives are crucial for sustainable economic development. This research contributes to the growing body of literature on technology-driven economic development in emerging regions while providing actionable insights for policymakers and stakeholders in Northeastern Nigeria.