Algorithm and Capital: Interaction on the Path to the Formation of a Digital Economy

The article provides an analysis of the interplay between algorithms and capital as key factors driving the transformation of economic relations towards machine-to-machine interactions for humans. Particular attention is given to modelling the dynamics of digital transformation, as well as analysing the causes of historical failures in projects involving automated transaction computation. This analysis enables a better understanding of the necessary directions for change on the path towards establishing a fully-fledged digital economy. The relevance of the research topic is underscored by the fact that the profound transformation of business practices due to informatisation is evolving into the initial stages of comprehensive digitalisation across the entire economy. It is emphasised that such digitalisation is made possible through the deployment of specific platforms utilising artificial intelligence and blockchain technologies. The aim of this study is to uncover the fundamental nature of the interaction between algorithms and capital in the journey towards creating an integrated layer of economically interconnected computations and automated machine-to-machine interactions based on new types of digital platforms. The proposed concept of digitalisation, which clarifies its distinction from informatisation and the electronic-network economy, allows for a more precise definition of resource mobilisation directions and economic development indicators, taking digitalisation into account. The article also explores tasks related to modelling the dynamics of digital transformation, detailing the conditions and challenges of digitalisation, and outlines the directions, methods, and tools for «end-to-end automation.» This is done with consideration of historical precedents in the automation of economic management and the resolution of economic tasks related to resource allocation among enterprises and industries.

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