American Journal of Business Management, Economics and Banking ISSN (E): 2832-8078 Volume 16, | Sep., 2023 P a g e | 196 www.americanjournal.org THE CONCEPT OF THE DIGITAL ECONOMY, ITS SIGNIFICANCE AND DEVELOPMENT TRENDS Qodirov Azamatjon Bakhodirovich Chief Specialist of "Asia Alliance Bank" JSCB, Master of Science in Information Systems and Technologies in Economics Email: azamattosan@mail.ru A B S T R A C K E Y W O R D S This article discusses the concept of digital economy, its role in management and its importance in achieving economic prosperity. Also, some statistical data obtained from open sources are presented, and based on them, an attempt is made to explain why the use of digital technologies is important. In addition, at the end of the article, an attempt is made to give an understanding of "artificial intelligence" and to shed light on why it is important. economy, digital economy, digital technologies, human capital, effective use of resources, artificial intelligence. Introduction In the current era of human development, the use of digital technologies in all areas of the economy is becoming crucial. The degree of development of digital technologies is of great importance in the organization of an effective and competitive economy, in the optimal use of material and non-material resources. The use of digital technologies not only leads to an increase in the quality of goods and services but also creates conditions for reducing costs. At the same time, the use of digital technologies creates several conveniences in limiting the hidden economy, ensuring transparency, preventing corruption, and establishing effective communication between the state and society [1,2]. For this reason, in recent years, the processes of transition of the economy to a form based on the systematic use of information and communication technologies or the so-called "digital economy" have accelerated all over the world. In the decision of the President of the Republic of Uzbekistan dated April 28, 2020 "On measures for the widespread introduction of the digital economy and electronic government", the implementation of this practice in the economy of our country, doubling the share of the digital economy in the gross domestic product in 2023, important tasks such as increasing the volume of their exports to 100 million US dollars and tripling the volume of services in the field have been set [3]. Literature review According to many researchers, the concept of "Digital Economy" was first coined by Nicholas Negroponte, a scientist at the Massachusetts Institute of Technology. According to him, the digital economy as a new economic system is characterized by the fact that digital products do not have American Journal of Business Management, Economics and Banking Volume 16 Sep, 2023 P a g e | 197 www.americanjournal.org physical weight and their quantity is replaced by the size of information, the area occupied by the product is several times smaller, the resource costs in the production of electronic goods are low, and products can be purchased through the Internet. it has the advantage of moving very quickly across the surface of the earth. Some scientists also use terms such as "network economy", "electronic economy", "internet economy", and "information economy" to explain the concept of "digital economy". But "digital economy" is a relatively broad concept that summarizes the terms listed above. The concept of "digital economy" has been defined differently by different organizations or scholars. For example, according to experts from the World Bank, the digital economy is a new example of rapid economic development based on real-time information exchange and represents a system of economic, social and cultural relations based on the use of digital information and communication technologies [4-11]. Table 1. Definitions of the digital economy Source Description English definition Kling & Lamb 2000: in Brynjolfsson & Kahin 2000a "… includes goods or services that are highly dependent on digital technologies for their production, sale or delivery" "...includes goods or services whose development, production, sale, or provision is critically dependent upon digital technologies". OECD 2013: The Digital Economy "The digital economy makes it possible to sell goods and services through e-commerce on the Internet." "The digital economy enables and executes the trade of goods and services through electronic commerce on the Internet". European Commission 2013: Expert Group on Taxation of the Digital Economy “… an economy based on digital technologies (sometimes called the internet economy)” "...an economy based on digital technologies (sometimes called the internet economy)". Deloitte n.d.: What is Digital Economy? “…economic activity resulting from the billions of daily online interactions of people, businesses, equipment, information and processes” "...the economic activity that results from billions of everyday online connections among people, businesses, devices, data, and processes." Methodology The method of induction and deduction was widely used in the analysis of issues in the research work. The concept of the digital economy was closely studied. In the article, statistical information provided from open sources on the global Internet network, the opinions of the world's leading scientists in this field, and the views of influential organizations were highlighted and compared. Logical approach, cause and effect, induction and deduction methods were used to conclude the work. American Journal of Business Management, Economics and Banking Volume 16 Sep, 2023 P a g e | 198 www.americanjournal.org Results and Discussion In the 20th century, areas such as exploitation of underground resources, industry and construction were seen as the main drivers of the world economy, the observed trends, and many scientific centres and scientists call the 21st century the age of "information technologies" or "digital technologies". are predicting. Every awake layer of the society sees the confirmation of this in their daily life. That is, to date, every member of society regularly uses some elements of the digital economy, such as electronic (gas, electricity) meters, electronic payment systems, and plastic cards. It is enough to get acquainted with the list of the largest companies in the world to feel the importance of the digital economy. The top 10 largest companies in the world are shown in the picture below. Figure 1. Market value of companies From the above image created on the basis of the www.statista.com site, it can be seen that today the largest companies in the world are those whose activities are directly related to digital technologies. Except for Saudi Aramco (Saudi Arabia) and LVMH Moët, Henessey, Louis Vuitton (France), the companies shown in the graph are all top digital technology creators and all are based in the United States. Through this example, it is easy to understand why the USA is not leading the world. Indeed, when value is created through digital technologies or the digital economy, the underground or surface wealth of countries is almost not involved, and on the contrary, human capital, scientific achievements and creativity appear as the main resources. This situation means that by the 21st century, human capital and the development of science have become the main factors in creating national wealth, not material wealth. Considerable work has been done in this regard in our country, and banking, finance, tax, education, health care, internal affairs bodies, cadastre, social protection and other various fields are the most used by the population and business representatives. are using technologies more and more and the scope of services is increasing day by day. 2746.21 2309.84 2055.22 1340.53 1084.06 708.4 599.82 539 482.5 477.38 Apple (USA) Microsoft (USA) Saudi Aramico (Saudi Arabia) Alphabet (USA) Amazon (USA) NVIDIA (USA) Meta Platforms (USA) Tesla (USA) LVMH Henessey, Louis, Vuitton (France) Visa (USA) Market value of companies (in billions of US dollars) American Journal of Business Management, Economics and Banking Volume 16 Sep, 2023 P a g e | 199 www.americanjournal.org It's no secret that many of the above-mentioned services and hundreds of other services can be easily implemented through the www.my.gov.uz site, which creates several conveniences and advantages for individuals and legal entities. The number of services provided through this website and the scope of population coverage is increasing year by year. In addition, every ministry and agency in our country has its own website. It has been established that ministries and agencies can provide their own services remotely through the Internet, and serious attention is being paid to infrastructure and personnel training to speed up these activities. The latest trend in the development of digital technologies is the widespread and deep penetration of artificial intelligence elements into the life of society. This phrase is used more and more often not only by world scientists but also by ordinary people. The term artificial intelligence has different definitions in different sources. For example, the website www.wikipedia.org defines this concept as follows: "Artificial consciousness, artificial intelligence, or artificial intelligence (English: Artificial intelligence; usually abbreviated as AI) is the consciousness displayed by machines, as opposed to the natural consciousness displayed by humans or animals. Leading artificial intelligence textbooks define the field as the study of "intelligent agents: any system that understands its environment and takes actions that maximize the chance of successfully achieving its goals." According to many scientists, in the future we will increasingly turn to artificial intelligence in many aspects of our social, economic and even political life. Today, we see its elements in driverless cars, various electronic translators, various smart gadgets and other electronic devices. The world's leading IT companies emphasize that in the future, the tendency to use artificial intelligence in management, education, production, transportation, social research, medicine, law and other fields will inevitably be observed. Conclusions Based on the above, it can be concluded that the term "digital economy" has not been given a clear and uniform definition. Therefore, it is important to understand that the digital economy is at least an economy based on digital technologies, or that the use of digital technologies in production, transportation, sale and purchase is also a manifestation of the digital economy. In addition, it is important to keep in mind that digitization of the economy will remain a priority in the future, and that artificial intelligence will play a huge role in this. It's also becoming increasingly clear that one of the most important things you can do is to anticipate how digital technologies will affect our economy. Given that the geographical location of the Republic of Uzbekistan is far from waterways, it causes some inconvenience in international trade. References 1. Decision of the President of the Republic of Uzbekistan dated April 28, 2020 "On measures for the widespread introduction of the digital economy and electronic government" 2. Volkova, N., Kuzmuk, I., Oliinyk, N., Klymenko, I., & Dankanych, A. (2021). Development trends of the digital economy: E-business, e-commerce. 3. Алексеенко, О. А., & Ильин, И. В. (2018). Цифровизация глобального мира и роль государства в цифровой экономике. Информационное общество, (2), 25-28. http://www.my.gov.uz/ http://www.wikipedia.org/ American Journal of Business Management, Economics and Banking Volume 16 Sep, 2023 P a g e | 200 www.americanjournal.org 4. Горскина, Л. С., & Пропп, О. В. (2019). Развитие цифровой экономики в России. Вопросы инновационной экономики, 9(2), 275-286. 5. Петросян, А. (2016). Что нужно знать о цифровой экономике и ее перспективах. URL: http://www. kommersant. ru/doc/3063024 (дата обращения: 29.07. 2017). 6. Kelly, K. (1999). New rules for the new economy: 10 radical strategies for a connected world. Penguin. New York: Viking, 224 p. 7. http://www.vsemirnyjbank.org/ru/ events/2016/12/20/developing-the-digital-economyin-russia- international-seminar-1. 8. https://uz.wikipedia.org/wiki/Sunʼiy_intellekt 9. www.statista.com sayti 10. Хусанбоев, С. Е. (2022). Перспективные направления развития агротуризма в республике Узбекистане. Бюллетень науки и практики, 8(5), 476-482. 11. European Commission 2013: Expert Group on Taxation of the Digital Economy. http://www.statista.com/