THE NEW CIVILIZATION, ARTIFICIAL INTELLIGENCE AS THE STANDARD OF THE DIGITAL ECONOMY: DIGITAL ECONOMY POLARIZATION IN THE GLOBAL SOUTH

Abstract

This study examines the impact of digital transformation, driven by advances in artificial intelligence (AI), on the global North-South divide. Unlike previous research that focuses on the U.S.-China rivalry, this study explores potential crises arising from disparities between the northern and southern hemispheres. The Fourth Industrial Revolution, characterized by AI and machine learning, has ushered in a digital economy, intensifying AI competition among major nations like the U.S. and China. This competition spans research, talent, infrastructure, and commercialization, with the U.S. leading in private investment and China in government-led initiatives. The study suggests that this rivalry could deepen the North-South divide, as advanced countries dominate AI development, sidelining the Global South. Nonetheless, the digital economy could offer growth opportunities for developing nations, enhancing their participation in global trade. The paper investigates how AI development affects the gap between developed and developing countries and explores global governance frameworks to address these disparities.