Artificial Intelligence in Ensuring Sustainable Economic Development

Abstract

The article examines the primary directions of artificial intelligence (AI) development and application in domestic and international business, as well as in public administration. The study’s relevance stems from the need to establish principles for AI development in the economy to enhance the efficiency of public production. The aim is to define principles for AI development to improve the effectiveness of managerial decision-making. A contradiction is identified between the active implementation of digital technologies and AI in the economy and the exacerbation of socio-economic challenges. The study establishes a connection between the main directions of AI development and application in the Russian Federation and Klaus Schwab’s concept of the Fourth Industrial Revolution. It analyzes discrepancies between the proclaimed revolutionary nature of current transformations and the stagnation of key indicators, particularly labor productivity growth, which are typically signals of an industrial revolution. The theoretical and methodological foundations of the Fourth Industrial Revolution concept, guiding states and businesses, are shown to hinder effective digital transformation aimed at improving economic efficiency. The limitations of the Industry4.0 framework obstruct the recognition of the need for dynamic economic-mathematical models (EMMs), reducing economic development to technical digital transformation measures without linking them to the economic efficiency of digitalization costs. This approach overlooks the need for tools to manage economic development, particularly in enhancing labor productivity, selecting efficient technologies, and ultimately increasing profitability. As a result, an alternative scenario is proposed for the development and use of cybernetic AI in economic management to ensure proportional economic development, addressing strategic challenges for the state and businesses.