CHARACTERISTICS OF THE DIGITAL TRANSFORMATION OF THE ECONOMY IN THE CONTEXT OF GLOBAL CHALLENGES

Abstract

The article focuses on an in-depth study of digital transformation’s profound impact on the modern economy, particularly on its business processes and socio-economic systems. In today’s rapidly changing technological environment, key innovative technologies such as artificial intelligence, blockchain, the Internet of Things, and big data are pivotal in transforming traditional industries. These technologies are reshaping existing sectors and creating new opportunities for growth and development across various industries. The article provides a comprehensive analysis of the advantages offered by the digital economy, including significant improvements in productivity, operational efficiency, and the expansion of access to global markets. Additionally, it highlights how digitalization allows businesses to streamline processes, reduce costs, and increase their competitiveness on a global scale. The article also draws attention to the challenges posed by the rapid adoption of digital technologies, particularly concerning cybersecurity risks and the protection of personal data. These issues have become more pressing as digital technologies permeate all areas of economic activity, making the need for secure digital infrastructures more urgent. A critical issue raised in the article is the insufficient development of digital infrastructure in Ukraine, which has slowed the country’s pace of digital transformation and has become a barrier to full integration into the global digital economy. The article explores the prospects of digital technology development in Ukraine within the framework of international digitization initiatives, such as the European Union’s "Digital Europe" program. In particular, the study emphasizes the importance of making substantial investments in digital infrastructure, enhancing the digital competencies of the population, and safeguarding digital rights. A comprehensive approach to digital transformation is essential for the modernization of all sectors of the economy, ensuring more sustainable growth and greater global competitiveness for Ukraine. By integrating into the global digital space, Ukraine can better position itself as an important player in the global economy of the future.