Evaluate the impact of recent technological developments on the future of the global economy.
As per Kosinski et al., (2013), Big data, the Internet of Things (IoT), and Artificial Intelligence
(AI) have combined to drive recent technological advancements, which have had a significant
impact on the future of the global economy. These innovations have fundamentally altered how
businesses operate and opened up huge opportunities, but they have also brought about fresh
ethical, social, economic, and legal difficulties. Businesses can now predict human behavior
more precisely than ever thanks to the integration of big data and AI. Businesses can use
artificial intelligence (AI) algorithms to comprehend consumer preferences, demographics, and
even personal traits (Kosinski et al., 2013). Access to data is a key element for competitive
advantage because these businesses rely on enormous amounts of user data collected to make
superior decisions supported by AI (Mayer-Schonberger & Cukier, 2013). Businesses are
increasingly using AI to help them make crucial decisions, from customer segmentation to
location-based marketing, as it is now more accurate than ever at predicting human behavior
(
Westbrook, 2020
). However, the increasing reliance on mysterious AI systems has given rise to
moral questions regarding openness, privacy, and individual rights.
It remains difficult to strike a balance between the advantages of AI-driven decision-making and
the protection of people's privacy rights. Due to pandemic restrictions, businesses were able to
continue operating thanks to the accelerated digital transformation, which also helped to fuel the
rise of online sales and cloud-based operations. Although these technological advancements have
allowed for sizable profits with low expansion costs, they have also increased wealth
concentration among tech giants, raising questions about socioeconomic inequality. The global
economy is now entering a new era of opportunities and challenges as a result of recent
technological advancements driven by big data, IoT, and AI. Even though digitalization and
predictive analytics have greatly benefited businesses, issues with transparency, privacy, and
wealth concentration need to be carefully considered and effectively addressed by regulations.
The future of the global economy will be shaped by finding the right equilibrium between the
influence of technology and the defense of individual rights. Technological upgradation impacts
on the change in the global economic and cultural landscape in an opaque manner and also
diverts the economy towards the pursuit of a sustainable regime (
Di Vaio et al., 2020
). The
overall impact of digital advancement has been noticed in increasing business expansion scopes
with the improvement in livelihood.
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