DIGITAL ECONOMY DEVELOPMENT: GLOBAL TRENDS AND CHALLENGES FOR UKRAINE

Abstract

The development of scientific thought, the introduction of digital technologies and artificial intelligence have led to dramatic changes in economic relations. We are witnessing the emergence of a new type of economy: the digital economy. It is defined by the acceleration and intensification of digitalisation processes that have been going on for more than two decades, i.e. the growing use of digital technologies by businesses, governmental and non-governmental organisations, employees, consumers and citizens. The digital economy is based on the Internet economy but significantly differs from it. New technologies, such as artificial intelligence, cloud services, the Internet of Things, blockchain etc accelerate the process of datafication, i.e. the creation of digital representations of the objects of the real world, intensify networking and promote personalisation. The specifics of the digital economy are determined by the intangible data flow, unprecedented data integration, “blurring” of borders between countries, progressive automation of physical and mental labour in the context of increasing flexibility and autonomy of machines and processes through the use of artificial intelligence. Digitisation processes, once confined to selected sectors, some institutions and compa-nies, certain departments of public administration and accessible only to certain units, are now becoming commonplace and global. As a result the way we produce and consume, the way the market is organised under the influence of new business models, the nature of work and labour relations, the main functions of the state and the way they are imple-mented are changing. Significant changes are also taking place at the global level. Society, economy and politics are undergoing digital transformation. The development of the digital economy is a priority for the government policies of most economically developed countries, including Ukraine. The post-pandemic transfer of a large number of employees around the world to remote work and the resulting increase in the level of society digitalisation make the topic of scien-tific research relevant. The author summarises and develops the theoretical foundations of the development of the “digital economy” phenomenon, clarifies a number of terms based on the analysis of the conceptual and categorical apparatus, summarises the experience of the development of the digital economy abroad and in Ukraine, conducts a SWOT analysis of the Ukrainian economy digitalisation and identifies acute debatable issues of the formation of the global digital divide in society. The study concludes that the adoption of national digital strategies is the basis for the development of the digital economy and the information society as a whole.