Technological Trends in the AI Economy: International Review and Ways of Adaptation

455 Pages·2023·9.977 MB·English

by  Elena N. Makarenko, Natalia G. Vovchenko, Evgeny N. Tishchenko

Smart Innovation, Systems and Technologies 625
Elena N. Makarenko
Natalia G. Vovchenko
Evgeny N. Tishchenko   Editors
Technological
Trends in the AI
Economy
International Review and Ways
of Adaptation
123
Smart Innovation, Systems and Technologies
Volume 625
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· ·
Elena N. Makarenko Natalia G. Vovchenko
Evgeny N. Tishchenko
Editors
Technological Trends
in the AI Economy
International Review and Ways of Adaptation
Editors
Elena N. Makarenko Natalia G. Vovchenko
Rostov State University of Economics Rostov State University of Economics
Rostov-on-Don, Russia Rostov-on-Don, Russia
Evgeny N. Tishchenko
Faculty of Computer Technology
and Information Security
Rostov State University of Economics
Rostov-on-Don, Russia
ISSN 2190-3018 ISSN 2190-3026 (electronic)
Smart Innovation, Systems and Technologies
ISBN 978-981-19-7410-6 ISBN 978-981-19-7411-3 (eBook)
https://doi.org/10.1007/978-981-19-7411-3
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Introduction: The AI Economy: A New Model
for the Development of Contemporary Economic
Systems
The Fourth Industrial Revolution facilitated the transition to a new technological
order—Industry 4.0. Its key feature is the ubiquity and prevalence of smart tech-
nology, the central element (core) of which is artificial intelligence (AI). In this
regard, a new model of development of economic systems that have emerged in
Industry 4.0 can be called the AI economy. The emergence of the AI economy
created new technological trends.
These trends include ubiquitous (covering all areas of the economy) and total
automation (covering the entire set of production and distribution and organizational
and management processes) based on end-to-end Industry 4.0 technologies: robots,
Big Data, Internet of Things, etc. This trend is contradictory. On the one hand, it
contributes to the growth of labor productivity. On the other hand, it increases the
capacity of financial and energy resources in all economic processes and causes
social tension due to the need to improve skills or retrain with increased risks of
unemployment.
The technological trends of the AI economy also include the mass creation of
smart territories (cities and regions) controlled by machine vision, as well as smart
houses controlled by mobile applications. This trend is also contradictory. It increases
the transparency of governance of economic systems and their inclusiveness but
requires redefining the boundaries of private and public life. Personal space needs to
be reconsidered because people are surrounded by and dependent on smart devices
in public places and even in their homes.
Another trend in the AI economy has to do with increasing threats and the growing
importance of cybersecurity. The AI economy is based on digital data. On the one
hand, the electronic format increases the convenience of collecting, processing,
storing, and using this data. On the other hand, it makes data vulnerable to cyber-
threats—malfunctioning technical devices, power supply, reliability of software, and
cybercrime.
v
vi Introduction:TheAIEconomy:ANewModelfortheDevelopmentof…
These technological trends require adaptation of today’s economic systems to
them to remain competitive in global high-tech markets, maintain a high quality
of life, and use these technological trends in the interests of socioeconomic
development.
First, it is necessary to establish a legal framework for the AI economy as a
new model for developing economic systems. AI and smart technologies that rely
on it constitute intellectual property. The state’s legal system must simultaneously
make advanced technologies widely available, protect the rights of their owners,
and guarantee the payment of royalties to recoup investments in innovation and
technology.
The difficulty is that AI and smart technologies based on it are atypical intellectual
property objects. They represent not just technologies but a new kind of social agent
that are subjects of the machine (through the Internet of Things) and man–machine
(through the user interface and intelligent decision support) communications. More-
over, new knowledge, information, and technological solutions generated by AI are
objects of intellectual property, a specific subject of law (rightsholder) of which is
AI.
Second, it is advisable to modernize state regulation in the AI economy. The state
apparatus cannot stay in place and must keep up with the times as society and the
economy move into a digital reality. Monitoring of economic activities and taxation
and the provision of public services should be automated through smart technology,
which is reflected in the system of electronic government.
In this case, the difficulty is that government regulation of the AI economy must
stimulate it and avoid restraining its development. A significant advantage of the
AI economy is increased transparency of economic systems using digital finance,
e-commerce, and digital taxation, which ensures the exit of the national economy
from the shadow sector.
Third, significant funding is required for the AI economy. Technological trends are
only possible with sufficient and continuous funding at all stages of the innovation
process: from R&D to implementation and distribution in industry markets. The
investment attractiveness of future innovation projects in the AI economy depends
on the success of the commercialization of advanced technologies and the return on
investment in them.
The state funding of science and higher education deserves special attention. The
role of universities as centers of excellence and sources of digital talent has increased
in the AI economy. University funding determines the future growth opportunities
of the AI economy and its future technological trends.
Fourth, AI industries need to adapt technology to industry-specific features.
Despite the universality of smart technology, each area of application requires unique
applied solutions. This requires a much more flexible and detailed approach than a
simple division of the economy into the industry, services, and agriculture. Each
market of the AI economy is specific; even each enterprise must create its own
organizational model for using smart technology.
Introduction:TheAIEconomy:ANewModelfortheDevelopmentof… vii
The existing literature covers the Fourth Industrial Revolution, Industry 4.0, and
digital technology in great detail. Nevertheless, there is still no scientific under-
standing of the new model of development of economic systems, formed under the
influence of the Fourth Industrial Revolution and based on the digital technology of
Industry 4.0. This is a gap in the literature that requires further scientific study.
Moreover, the existing publications consider the current technological trends sepa-
rately. Existing knowledge in this area is scattered and fragmented, which also serves
as a gap in the literature. The experience and prospects for adapting to these tech-
nological trends are poorly understood, which is also the research gap. All gaps
identified in the literature are filled by this book, which is dedicated to system-
atizing existing information and adding to the scientific knowledge of contemporary
technological trends through a more comprehensive and multidisciplinary view of
them.
This book aims to explore and discuss international experiences and identify ways
to adapt to technological trends in the AI economy. The novelty of this book lies in
the fact that it first proposed a scientific concept to explain and designate a new model
of development of contemporary economic systems in terms of Industry 4.0—the AI
economy concept. In this way, the book has clarified and streamlined the categorical
apparatus and opened up possibilities for a more focused study of contemporary
technological trends.
The book is also unique in that it has formed a systemic view of the technological
trends of the AI economy and a comprehensive study of them from the perspective
of society, economy, and law. The practical significance of the book lies in the fact
that it reveals the best international practices and contains practical industry cases of
technological trends in the AI economy based on the recent Russian experience.
The noted benefits are consistently achieved in the five parts of the book. The first
part systematizes technological trends in the AI economy and outlines its contribution
to socioeconomic development. The second part explores the Regulatory Framework
for the AI Economy. The third part focuses on government regulation of the AI
economy. The fourth part reveals the Current Problems of Financing the AI Economy
and Ways to Solve Them. The fifth part provides an Industry Overview of the AI
Economy.
The primary audience for this book is scholars engaged in studying the issues of
doing business in an Industry 4.0 environment. For them, the book offers a scientific-
theoretical concept of the AI economy as a new model of development of contem-
porary economic systems, presents its current technological trends, and offers scien-
tific and methodological recommendations for adapting to these trends. The book’s
multidisciplinarity makes it attractive to representatives of various fields of scientific
knowledge, including innovation economy, business economy, state regulation of the
economy, regional economy, management, finance, sociology, law, and information
and communication technology (ICT).
viii Introduction:TheAIEconomy:ANewModelfortheDevelopmentof…
An additional audience for this book is practicing experts. Public authorities will
find in the book the author’s recommendations for improving the state regulation of
the AI economy at the level of countries and regions. Business entities operating in
Industry 4.0 will find comprehensive applied recommendations for socioeconomic
adaptation to the latest technological trends in the AI economy.
Evgeny N. Tishchenko
Elena N. Makarenko
Natalia G. Vovchenko
Contents
Part I Technological Trends in the AI Economy and Its
Contribution to Socio-economic Development
1 Innovation and High-Tech Trends and Their Contribution
to the Transition to a New Quality of Economic Growth ........... 3
Elena G. Popkova
2 Technological, Economic, and Social Changes: The Role
of End-to-End Technologies .................................... 13
Natalia G. Vovchenko, Olga V. Andreeva, Valeria D. Dmitrieva,
Valeriya S. Kaptsova, and Venelin K. Terziev
3 Fuzzy-Multiple Model of a Gamified Mobile Application
“Smart Home” Based on Bartle’s Classification of Players’
Psychological Types ........................................... 21
Lyudmila V. Sakharova, Evgeny N. Tishchenko,
Mikhail B. Stryukov, Nikita V. Bukhov, and Gulnara T. Omarova
4 Developing Competitive Strategies Based on Scenario
Analysis with the Use of AI Capabilities ......................... 33
Nikolay A. Dimitriadi, Oleg I. Shchepilov, and Almaz K. Atabekov
5 Analysis of Business Data and Cybersecurity as New Areas
of Activity for Business Analysts in the Context of Digital
Transformation ............................................... 41
Elena N. Makarenko, Tatiana V. Makarenko,
Yulia G. Chernysheva, Irina A. Polyakova, and Irina A. Kislaya
6 Investigation of a Singularly Perturbed Task Solution
in an Unbounded Domain ...................................... 49
Saly Karimov and Gulzhamal M. Anarbaeva
ix