The Cool For The Summer singer will be honoured at the New York City event on 11 December (15). She will also perform at the star-studded ceremony.
"Demi Lovato is an artist in full control of her career," said Janice Min, co-president and chief creative officer of Guggenheim Media’s Entertainment Group. "Her ability to use and not hide her personal story in her music and in her own mission is inspiring.
"She has a passion and drive to empower other girls and women that is remarkable. She’s a true force in the industry and a ‘rule breaker’ who has inspired millions."
Other female artists who will be feted at the event include Lady GaGa, who will receive the Woman of the Year Prize, Alabama Shakes' Brittany Howard, who will be given the Powerhouse award, and Lovato's fellow Disney alum Selena Gomez will be honoured with the Chart Topper prize.