CIW 1 – Information Society and Digital Economy

Digital Economy: risks and perspectives

The term "digital economy" refers to economic activity enabled by digital

technologies such as artificial intelligence, cloud computing, blockchain, and the
internet of things. The digital economy has grown rapidly in recent years,
transforming many industries and opening up new opportunities for efficiency and
innovation. But there are a lot of hazards and concerns associated with the digital
economy, such as data privacy, cybersecurity, digital divide, moral conundrums,
and effects on society and the environment . This essay will address the key
problems and my viewpoint on the digital economy, as well as some potential
solutions and proposals. One of the main risks of the digital economy is
cybersecurity, which involves protecting digital systems and data from
unauthorized access, manipulation or damage. Cyber attacks can have serious
consequences such as identity theft, fraud, espionage, sabotage and terrorism. So I
suppose the way to solve the problem is to invest in technology and set clear
standards for the security of digital infrastructure. [1]
Another risk of the digital economy is data privacy - the right of people to
govern their personal information, including how it is collected, used, and
disseminated. Data allows for the development and distribution of digital products
and services including e-commerce, social networking, online advertising, and
tailored suggestions. However, data creates ethical and legal concerns, such as
permission, ownership, access, and privacy. Personally, like others, I am unaware
of how digital platforms acquire and exploit our data. For example, the Cambridge
Analytica scandal revealed how the personal data of millions of Facebook users
was harvested and used to influence the 2016 US presidential election of Donald
Trump and Ted Kruz. So, in my opinion it is necessary to protect the data privacy,
by empowering the users with more transparency and control over their data, and
by enforcing stricter regulations and sanctions for the data abuses. [2]
The third risk of the digital economy is the gap between those who have
access and skills to use digital technologies and those who do not. The digital gap
can cause or worsen societal inequality and exclusion (income, education, gender,
and location). In addition, the digital divide can have an impact on company and
industry competitiveness (reduced costs, higher efficiency and market expansion,
better marketing). I believe this may be solved by increasing connection and
boosting the population's digital knowledge and abilities.
Society and the economy can gain a great deal from the digital economy, but
there are also serious concerns and difficulties that must be handled, such as
cybersecurity, data privacy, and the digital divide. Adopting a balanced and
comprehensive approach to the digital economy is therefore imperative. This
necessitates the collaboration and coordination of multiple stakeholders, including
governments, corporations, civil society, and international organizations, as well as
the development and implementation of effective policies and regulations to
protect user rights and interests while also advancing digital economy values and
tenets such as accountability, fairness, and trust.
 REFERENCES

[1]https://www.academia.edu/45422713/
Digital_Platform_Economy_Overview_Emerging_Trends_and_Policy_Perspective
s
[2]https://florinalaza.medium.com/the-cambridge-analytica-scandal-explained-
a366be5764bd