FROM DIGITALIZATION TO ALGORITHMIC ECONOMY: TRANSFORMATION OF REGIONAL ECONOMIC GOVERNANCE MECHANISMS UNDER THE IMPACT OF ARTIFICIAL INTELLIGENCE

Abstract

The study aims to assess the relationship between the intensity of digitalization, the use of artificial intelligence, and the effectiveness of regional economic management in Russia. The empirical dataset covers the period 2020–2025, with a key inter-regional analysis based on 2024 data. The study encompasses 85 constituent entities of the Russian Federation – grouped into eight federal districts – and 15 regions representing three levels of digital maturity. Comparative, typological, and correlation methods were employed. The findings indicate that digital maturity correlates with per capita Gross Regional Product (GRP), investment activity, the concentration of IT personnel, and the budgetary impact of digital solutions. The strongest correlations were identified between the number of IT specialists and average wages (r=0.91), and between the share of online government services and per capita GRP (r=0.89). The study’s scientific novelty lies in conceptualizing the algorithmic economy as a new framework for regional management that integrates data, predictive models, and resource allocation mechanisms. A differentiated policy model is proposed for leading regions, regions at a baseline level of digitalization, and lagging regions.