Open Access Journal Article

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

by Robertas Damaševičius a,* orcid
a
Department of Applied Informatics, Vytautas Magnus University, Kaunas, Lithuania
*
Author to whom correspondence should be addressed.
JRE  2023, 11; 2(2), 11; https://doi.org/10.58567/jre02020001
Received: 8 June 2023 / Accepted: 29 June 2023 / Published Online: 27 October 2023
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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.

Keywords: Artificial Intelligence; Regional Economic Development; Economic Trends; Predictive Analysis;
Copyright: © 2023 by Damaševičius. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

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ACS Style
Damaševičius, R. Regional Economic Development in the AI Era: Methods, Opportunities, and Challenges. Journal of Regional Economics, 2023, 2, 11. https://doi.org/10.58567/jre02020001
AMA Style
Damaševičius R. Regional Economic Development in the AI Era: Methods, Opportunities, and Challenges. Journal of Regional Economics; 2023, 2(2):11. https://doi.org/10.58567/jre02020001
Chicago/Turabian Style
Damaševičius, Robertas 2023. "Regional Economic Development in the AI Era: Methods, Opportunities, and Challenges" Journal of Regional Economics 2, no.2:11. https://doi.org/10.58567/jre02020001
APA style
Damaševičius, R. (2023). Regional Economic Development in the AI Era: Methods, Opportunities, and Challenges. Journal of Regional Economics, 2(2), 11. https://doi.org/10.58567/jre02020001

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