Digital economy has radically changed business models and economic relations in global context. Introduction of the digital revolution has required former industries affected by artificial intelligence, Big Data, the Internet of Things (IoT), and automation to adjust to the new market realities. To understand these transformations, we must begin with the definition of economics—the creation, distribution, and consumption of goods and services. In this context, the digital economy shows how tech is reshaping developing economies.
All actions of economy which relies on implementation of digital technologies and internet platforms to create and add value and to enhance productive efficiency. The International Monetary Fund (IMF) reports that the global share of digital economy amounts to greater than 15 percent of the Gross Domestic Product (GDP), and further estimation suggests the global rate of 7 percent Y-o-Y growth in the next five years. Organizations which have embraced digital strategies have increased their production by up to 25 percent and this clearly indicates the huge potentiality of the tools.
The impact of technology on industries
The digitalisation process has affected different sectors of the economy in a big way. In business like in commerce, e-commerce increased by 23 percent over the last one year and named giants in the market were Amazon and Alibaba. The addition of the artificial intelligence to sales platform enables the personalization of shopping and enhances shipping logistics. Digital banking and cryptocurrencies have transformed the financial sector through the provision of a more convenient, safer and cheaper way of engaging in the same activities that the traditional financial services offer.
At a speedier rate. With artificial intelligence and automation, job skills are also becoming more demanded in the work environment. According to a McKinsey report, over 30 percent of the present-day tasks may be automated by 2030, thus changing the expectations of jobs on new digital abilities.
The impact of technology on the creation of new opportunities for growth
Telemedicine and AI are changing medical services availability, as well as their quality, in healthcare. Machine learning algorithms have enabled the individuals to make correct diagnosis hence reducing wait times and increasing treatments given. With the development of technology appeared the new professional portrait, that of a digital economist. This professional is able to mix expertise in economics and data science to explain the economy of the digital market and guide businesses.
Through their digital transformation. On the LinkedIn data, there is an increase of 40 percent in demand of these professionals over the past three years. The digital economy will likely keep growing in the future, fueled by such innovations as quantum computing, Web3, and automated advanced technologies. A failure of the companies to embrace these technologies may put them at the risk of becoming lagging as the market increasingly gets competitive.
The challenges technology brings to traditional models of economic development
Which lowers the cost, and there will be more confidence in digital markets. Besides, quantum computing has a chance to change the landscape of solving problems by resolving complex issues in a few seconds, making scientific discoveries faster and enhancing business decision-making. Digital economy is a structural revolution that is transforming the manner in which we perceive interaction with goods and services. It affects many areas, such as commerce, finance and the labor market, compelling governments, companies, and employees to learn to live in the ever-changing environment.
In this regard, the benefit of digital economist and professionals working in the areas of emerging technologies will be central to make sure that the new era of world economy will grow sustainably and fairly. The learning of digital technologies and the creation of new approaches will allow the organization to stay competitive and the professional to access new employment opportunities in an economy that has continually changed.
Conclusion
The digital age presents an amazing future in terms of economic growth as well as social growth. Nevertheless, to the emerging economies that have no energy, such potential appears to be out of reach. Their online aspirations are threatened by the grim possibility of an unreliable power source and shortage of resources. Although there exists a ray of hope through a strategy which I would say is shared digital infrastructure. These barriers can be converted to growth opportunities by means of this cooperative model. The cooperation of nations and organizations based on regional agreements.
Like the Association of Southeast Asian Nations (ASEAN), African Union (AU), the Caribbean Community (CARICOM), etc., can lead to exploring the revolutionary power of digital technology, even despite the obstacles. Digital economy is one of the essential contributors to the global GDP. There is a revolution in industries as far as artificial intelligence, e-commerce, and financial technology innovations are shaking. The heart of this shift is data centers being the backbone of digital services, cloud computing and artificial intelligence-based application. Nevertheless, most developing.
