Digital Transformation Based on AI Technologies in European Union Organizations

Abstract

This study aims to investigate the influence of emerging digital technologies, such as artificial intelligence (AI), the Internet of Things (IoT), and cloud computing, on the digital intensity index (DII). The research method employed involves quantitative analysis of the indicators regarding DII and emerging digital technologies, conducted based on data published by Eurostat for EU members in 2021. During our research, we formulated and tested hypotheses about the relationship between the DII and emerging digital technologies, and the effect on the DII of using AI-based technologies in various economic processes. The formulated hypotheses were validated via four regression models designed during this study, using the most relevant factors. Our research results demonstrate that the DII is positively influenced by emerging IoT and cloud computing digital technologies, as well as the use of AI technologies based on machine learning and AI-based robotic process automation (RPA) software. Furthermore, the same positive influence was identified in human resource management and recruitment processes compared to the intensity with which these technologies are used in other economic processes. Based on these findings, this study offers persuasive arguments for implementing emerging digital technologies at the EU organizational level to achieve significant increases in digitalization levels.