Role of Artificial Intelligence in Digital Economy

Abstract

The digital economy is described as economic operations enabled by digital tools, such as the internet, vast datasets, cloud services, and increasingly AI. The digital economy signifies a fundamental transformation in value creation, trade, and allocation. Artificial intelligence (AI) is considered the core driver of the 2026 digital economy. It helps in boosting productivity and transforming business models. Artificial intelligence (AI) means making computers do things that normally need human intelligence. Artificial Intelligence is usually defined as a set of technologies that can imitate human intelligence in the process of problem-solving. In the case of the impact of AI on the digital economy, it enhances efficiency and productivity, enhances customer engagement, speeds up innovations, accelerates economic growth, and addresses global challenges. AI technology is incorporated into different sectors like banking, health, education, tourism, etc., in various ways. Through some case studies, it is made clear that AI is deeply adopted in the Indian Economy.