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OF THE DIGITAL ECONOMY AND ITS IMPACT ON BUSINESS
Amirov Temur Mashrab ugli
Assistant Professor, Department of “Economic
Theory” of Samarkand Institute of Economics and Service
Egamshukurova Mashhura Abdumalik kizi
Samarkand Institute of Economics and Service,
student of group XIM-124
Abstract:
This article is devoted to the study of the development of the digital economy and its
impact on the business world. Today, not only in Uzbekistan, but also throughout the world, the
process of transition to a digital economy is continuing at a rapid pace. As a result of this process,
favorable conditions are being created for the population and fundamental changes are taking
place in business models. As a result of the development of the digital economy, modern
technologies such as artificial intelligence (AI), machine learning, cloud computing, Internet of
Things (IoT), cryptocurrencies and blockchain technology are developing and progressing. These
technologies play an important role in automating business processes, managing data and
creating innovative solutions for consumers. Therefore, a lot of scientific work and research is
being conducted in this regard. In our article, we will highlight the factors that will stimulate the
further development of the economy through the use of modern technologies.
Keywords:
Digital economy, artificial intelligence, economic development, economic reforms.
Introduction.
Digital economy means the automation and optimization of economic processes
using digital technologies. The Internet, artificial intelligence, "big data", and blockchain
technologies are fundamentally changing all sectors of the economy, including business. For
Uzbekistan, the development of the digital economy will not only modernize the national
economy, but also allow small and medium-sized businesses to adapt to new, innovative forms.
The relevance of the topic is of great importance, especially given Uzbekistan's transition to a
digital economy and integration into global economic processes. This article discusses the
essence of the digital economy, its development factors, opportunities , and future prospects.
Simply put, the COVID-19 pandemic has given impetus to the development of new industries
and sectors in the global community. After the pandemic , e-commerce, e-banking, and distance
learning in particular have developed and flourished. These areas are still developing and
progressing today. If we do not take these circumstances into account and adapt our economy to
these areas, we will witness the economy lagging behind.
As we carry out economic reforms in our country, the main goal is to introduce world experience
into our economy and effectively use modern technologies, in short, the development of the
digital economy is seen as the ultimate result.
The impact of technological development on the economy. The main elements of the digital
economy, in particular the Internet, artificial intelligence (AI), and big data technologies, are
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playing a major role in modernizing the global economic system. For example, large companies
such as Amazon and Alibaba are creating opportunities for global markets around the world
through e-commerce. Such large companies have occupied a large place in world markets.
Artificial intelligence creates unique opportunities for analysis: analyzing customer behavior,
developing new products and services, as well as identifying competitors, which increases the
possibilities of e-commerce and creates a number of conveniences
New opportunities for business
Digital technologies create the following new opportunities for small and medium-sized
businesses:
E-commerce: Through online sales platforms, small business owners have the opportunity to
reach a global market . For example, platforms like Etsy and eBay offer small manufacturers the
opportunity to sell their products internationally.
Automation and optimization are the ways in which digital technologies can be used to automate
business processes and increase efficiency. This not only optimizes the production process, but
also improves marketing, sales , and customer relations.
can be used to analyze customer behavior and consumption trends, as well as create more
personalized products and services. With such modern technologies, anyone can buy or sell
products from anywhere.
3. Problems and challenges: The development of the digital economy brings many opportunities,
but also challenges and problems. These can be : Difficulties in developing technological
infrastructure, i.e. insufficient development of the Internet network, especially in rural areas.
Expensive technical equipment: Large investments are required to implement digital
technologies. Staff shortage: Lack of qualified specialists to manage and use technologies. Cyber
threats and security problems, i.e. data protection: Since the digital economy is based on data,
there is a risk of data theft or illegal use. Cyber attacks, i.e. companies and government systems
can be subject to cyber attacks and suffer significant financial losses. For example: The attacks
against large companies in the world cases of data theft. Social and economic inequality. The
digital divide, i.e. access to technology is not always equal for everyone , which increases social
inequality.
Job losses: Many traditional jobs could be lost due to automation and artificial intelligence.
For example: After the introduction of artificial intelligence in the banking and insurance sectors,
the need for manual workers will decrease. Legislative and regulatory challenges: Lack of
regulation - The development of the digital economy is developing rapidly, but in many
countries the legislation regulating it is still lagging behind. Illegal use of cryptocurrencies:
Although blockchain technology is secure , it can open the way for illegal financial transactions.
Difficulties in adapting to technological innovations - Resistance to change in companies and
government organizations: Many businesses face difficulties in switching from traditional
methods to digital systems. Lack of education and training programs: It is necessary to develop
programs designed to develop the necessary skills for the digital economy. Resistance to change
in companies and government organizations: Many businesses face difficulties in switching from
traditional methods to digital systems. Lack of education and training programs: There is a need
to develop programs designed to develop the skills needed for the digital economy.
I will provide solutions to the above mentioned problems.
It is necessary to develop cooperation between the state and the private sector to improve
technological infrastructure . It is necessary to strengthen protection systems against cyber
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threats. To adapt to new technologies, it is necessary to establish training programs for workers
and train them to manage and use new modern technologies. Adapting legislation to the
requirements of the digital economy can also be a solution.
Although the development of the digital economy has created many opportunities for small and
medium-sized businesses, there are also some challenges. The main problems are the
underdevelopment of the Internet, the high cost of technical equipment, the lack of personnel
capable of using digital technologies , and the lack of legislation and regulation. The following
are of great importance for the economy:
Lack of financial resources: Implementing digital technologies requires a significant amount of
investment . Many small businesses struggle to allocate these resources.
Cybersecurity and Security: Data protection is a major concern, especially when it comes to
online commerce and financial transactions. Cybersecurity issues can negatively impact the long-
term success of a business .
digital skills : Businesses need to have employees with the right skills to adapt to digital
technologies. However, many small businesses do not have the resources to develop these skills.
The development of the digital economy creates new opportunities for business, but a number of
challenges must be overcome for it to be fully profitable . For Uzbekistan, supporting small and
medium-sized businesses, improving digital skills, and strengthening cybersecurity are essential
in developing digital economy. Also, cooperation between the public and private sectors is
important in developing effective mechanisms for the introduction of digital technologies and
their implementation.
List of used literature.
1. IKTISODIYOT.TSUE.UZ - Information about the economy of Uzbekistan and the impact of
digital technologies on business.
2. INFOKOM.UZ - Articles and research on the digital economy and its impact on large
economic systems.
Scientific analysis of the global development of the digital economy and changes in the business
sector.
