Digital Economy and Artificial Intelligence: Transforming Global Economic Structures
Abstract
The rapid advancement of digital technologies has significantly reshaped global economic systems, giving rise to what is now known as the digital economy. This transformation is characterized by the integration of digital technologies into all aspects of economic activity, fundamentally altering production, distribution, and consumption patterns. At the core of this transformation lies Artificial Intelligence (AI), which has emerged as a critical driver of innovation, productivity, and efficiency across sectors. This paper explores the intersection between the digital economy and AI by analyzing their combined impact on economic growth, labor markets, governance, and evolving business models. Drawing on secondary data and conceptual analysis, the study highlights how AI strengthens digital platforms, enhances decision-making processes, and opens new avenues for economic opportunities. At the same time, it raises critical concerns regarding income inequality, technological unemployment, and ethical governance. The paper concludes by emphasizing the need for balanced policy frameworks that ensure sustainable and inclusive growth within the digital economy.
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Authors: Thimmegowda T.K.