Challenges of Artificial Intelligence Technology and Its Impact on Digital Economy Growth

Artificial Intelligence (AI) technology has a huge impact on the process of development related to the digital economy. This paper is derived from some country experiences to establish the key challenges the world is facing in regards to AI, which pertain to inequality and discrimination, unemployment issues, and changes in the labor market. Further, this article also investigates further to determine the direct and indirect effects of those challenges within the digital economy. Despite the significant opportunities that AI offers to increase productivity and innovation, managing these challenges requires multifaceted approaches and careful policy making. Finally, this article has emphasized the importance of investing in infrastructure, training skilled workforce, developing appropriate laws and increasing transparency and trust in the use of AI to fully utilize the potential of this technology for the sustainable growth and development of the digital economy.