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Regional Economic Development in the AI Era: Methods, Opportunities, and Challenges

Author

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  • Robertas Damaševičius

    (Department of Applied Informatics, Vytautas Magnus University, Kaunas, Lithuania)

Abstract

The dawn of the Artificial Intelligence (AI) era presents a plethora of new possibilities for analyzing regional economic development. The present article provides an in-depth exploration of the methods employed in this field, highlighting the immense opportunities that AI offers while also addressing potential challenges. The role of AI is crucial in complex data handling, enabling efficient analyses of intricate regional economic patterns. This capacity is paramount in shaping economic policies and strategies that are reflective of each region's unique needs and potential. The article firstly explores various AI methods used in economic analysis, including but not limited to machine learning, deep learning, and natural language processing. It delves into the application of these methods in discerning development trends, predicting economic shifts, and identifying strategic economic drivers unique to various regions. Subsequently, the potential of AI to transform regional economic analysis is discussed, encompassing its capability to process large and complex datasets, its power to predict future trends based on past and present data, and its ability to aid in strategic decision-making. However, this new era of AI-driven economic analysis is not without challenges. The latter part of this article thus confronts the issues related to data privacy, ethical use of AI, and the necessity of interdisciplinary skills in AI and economics. This exploration contributes to a broader understanding of how AI is transforming the landscape of regional economic development analysis, illuminating both its present use and future implications. By understanding these dynamics, we can better harness the potential of AI to advance economic prosperity in various regions around the globe.

Suggested Citation

  • Robertas Damaševičius, 2023. "Regional Economic Development in the AI Era: Methods, Opportunities, and Challenges," Journal of Regional Economics, Anser Press, vol. 2(2), pages 1-13, October.
    • Handle: RePEc:bba:j00009:v:2:y:2023:i:2:p:1-13:d:243
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    References listed on IDEAS

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