Analysis of Digital Innovations in the IT Industry that Transform Current Business Models of Companies: The Main Prospects and Challenges

This article aims to analyze the prospects and challenges of contemporary innovations in the IT sector and identify the main directions in which they can influence the transformation of current business models of companies. The informational basis of the work consists of analytical materials from international consulting firms that belong to the «Big Four», namely PricewaterhouseCoopers (PwC), Deloitte, KPMG, and Ernst & Young (EY), also McKinsey & Company, which are based on surveys of top executives, chief financial officers, IT directors, and other key figures in business and industry. General scientific methods of analysis and synthesis, comparison and logical generalization, abstraction, and tabular and graphical representation have been used. The main focus is on generative artificial intelligence and cloud technologies, which open up new opportunities for companies but also create significant challenges. The results show that the implementation of generative AI allows for the automation of content creation processes, reducing costs and increasing efficiency. Cloud technologies provide flexibility and scalability, allowing companies to quickly respond to market changes. However, the implementation of these technologies presents companies with the challenges of ensuring data security and regulatory compliance, developing digital skills among employees, and adopting sustainable and environmentally friendly practices. The conclusions of the article emphasize the importance of developing a clear company-level strategy, which will allow for the formation of a strong team, ensure efficient and distributed use of technologies, and management of changes. Recommendations for businesses include developing new skills among employees, integrating environmentally friendly practices, and enhancing cybersecurity. The authors suggest elaborating strategies to adapt to new regulatory requirements, which will enable companies to effectively use new technologies and maintain competitiveness in the market.