DIGITALIZATION AND ARTIFICIAL INTELLIGENCE IN THE ECONOMY: THEORETICAL FOUNDATIONS, LEGAL REGULATION, AND COMPETENCY DEVELOPMENT

Abstract

The fast growth of digital technologies has changed the global economy by creating new economic models, institutions, and ways to develop human capital. Digitalization has moved beyond simple automation to include artificial intelligence, which now affects production, government, education, and labor markets. AI is now a key factor that shapes economic relationships, regulations, and skill requirements. This article examines the theories and history of digitalization and artificial intelligence in both global and national economies. It reviews how different countries regulate digital transformation and build digital and AI skills. The study uses analysis of academic research, policy documents, regulations, and national strategies related to the digital economy and AI governance. The study shows that modern digitalization includes not just computerization and the move to a platform economy, but also the use of systems powered by artificial intelligence. This shift means that legal and institutional frameworks need to grow to cover data protection, ethics in AI, transparency in algorithms, and accountability. Different countries have taken varied approaches to regulating digitalization. The study also highlights the importance of building digital and AI skills for lasting economic growth. Adding these skills to education and job training can help close technology gaps and support a more inclusive digital transformation. The findings provide recommendations for policymakers, educators, and researchers working in the digital economy and in developing regulations for the use of AI in education.