The Future of the Digital Economy

Delve into the anticipated possiblities of our digital economy as we move into a new era of businesses and services reaching your doorstep through modern technology.

Introduction:

In today’s world, the newly transformative digital economy is constantly re-shaping the way we approach our lives and interactions. As our economy rapidly digitalizes, an estimated 70% of new value created over the coming decade will be based on digitally-enabled platform business models. The advancements of technology are only speeding up, and the future of aspects such as e-commerce and social media marketing hold limitless opportunities for economic growth. Nevertheless, there are a variety of implications and challenges to anticipate from digital platforms as we take the next step in revolutionizing our global economy.

The Impact of Artificial Intelligence:

Alongside the latest multitude of innovations in technology, the implementation of artificial intelligence (AI) in these products and services has become a worldwide phenomenon. In the digital industries, AI has been used to automate tasks, collect data, analyze consumer statistics, and develop personalized programs. Applications that are driven by artificial intelligence, from customer service chatbots to intricate machine learning, are beginning to take a more integral and powerful role in business operations due to its ability to provide convenience to consumers.

Electronic Commerce & Digital Consumerism:

The explosive growth in e-commerce and online shopping is followed by ramifications such as large retailers being forced to operate online. In February 2019, online sales narrowly surpassed general merchandise stores and therefore moved the main market and consumerism online for the first time. In a more positive light, e-commerce has facilitated operations for small businesses, conveniently helping them reach customers directly. Gradually, e-commerce giants like Amazon and Alibaba became the driving force behind digital consumerism as many customers rapidly switched to using the online marketplace for their purchases.

Image Source: BigCommerce

Employees of the Digital Economy:

Despite the benefits of convenience and customer experience, the digital economy has been facing constant criticism regarding its ethicality, especially towards the employees of the online marketplace. For instance, workers from a variety of backgrounds have stated that the restructuring of the global economy has reversed labor rights won generations ago and leaves employees disenfranchised. The rise of the gig economy has also received criticism about its deficient protections and ever-dwindling rewards, all sold on the promise of giving people the opportunity to become their own boss.

Conclusion: 

The digital economy has undoubtedly ushered in a new era, one riddled with both benefits and drawbacks as it seeks to integrate technology into our everyday lives. The possibilities for innovation are endless, but issues that have been normalized should be addressed in order to fulfill the initial promises of the online marketplace. In essence, by being open to change and facing challenges together, we can create a future where the digital economy thrives and benefits societies worldwide.

Works Cited

• https://www.bea.gov/data/special-topics/digital-economy 

• https://intelligence.weforum.org/topics/a1Gb0000001SH21EAG#:~:text=As%20the%20global%20economy%20rapidly,digitally%2Denabled%20platform%20business%20models. 

• https://www.forbes.com/sites/briansolis/2021/05/13/the-new-trajectory-of-retail-innovation-is-guided-by-digital-first-customers/ 

• https://www.researchgate.net/publication/377089318_THE_IMPACT_OF_ARTIFICIAL_INTELLIGENCE_ON_DEVELOPING_DIGITAL_ECONOMY#:~:text=There%20are%20a%20number%20of,focus%20on%20more%20complex%20tasks. 

• https://www.bigcommerce.com/articles/ecommerce/ 

• https://ssir.org/articles/entry/building_the_future_of_work_we_want