TRANSFORMATION OF THE ROLE OF HUMAN CAPITAL IN THE CONDITIONS OF THE DIGITAL ECONOMY

Authors

DOI:

https://doi.org/10.31891/mdes/2024-11-27

Keywords:

human capital, Digital economy, Industry 4.0, Industry 5.0

Abstract

The article establishes that, on the one hand, the formation and development of human capital is one of the main directions of the transition to a new digital paradigm, and on the other hand, the digital economy contributes to the radical transformation of all spheres of human activity, determining the new quality of human capital. The main international ratings and indices (DESI, WDCR, ICT Development Index) that characterize the level of development of the Digital economy of the countries of the world were analyzed, and criteria and indicators that characterize human capital were reflected in their structure, which indicates their close interaction and mutual influence. It is established that the role of human capital has undergone a transformation in the conditions of the Digital economy. A comparative description of the role, place, problems of human capital and current professions in the conditions of Industry 4.0 and Industry 5.0 is shown. Regarding the place of human capital, Industry 4.0 assumes that human labor is replaced by automated technologies, artificial intelligence; and Industry 5.0 involves the return of human, social and environmental aspects to production, workers become more meaningful and empowered through the use of digital devices, representing a human-centered approach to the use of technology. Among the problems of human capital in the conditions of Industry 4.0, we can highlight: significant changes in the system of relations for employees, first of all, from the point of view of awareness of the place and role of a person in creating values; the problem of preserving human capital released by machines and intelligent systems; the problem of the development of artificial intelligence, which will inevitably lead to mass unemployment; the growth of global competition in the labor market; a small number of employees with a sufficient qualification level of knowledge, practical skills in working with digital technologies; the problem of the emergence of "man-machine" conflicts. Among the problems of human capital in the conditions of Industry 5.0, it should be noted: the problem of trust in measurements created by artificial intelligence; the problem of optimal interaction between human capital and artificial intelligence; security problem (trust in digital ecosystems); digital inequality of employees (division between those who have access to the latest digital technologies and communications and those who do not have it or it is difficult to access it); lack of the necessary specialists on the labor market / the difficulty of hiring them on favorable terms for the business entity; the lack of time or the reduction of time for retraining due to the sharp acceleration of technological changes. The relevant professions of Industry 4.0 are specialists in the field of cognitive and information technologies, and in the conditions of Industry 5.0 - Chief Robotics Officer (CRO) (specializes in human-machine interaction, the CRO must have extensive knowledge in areas such as robotics or artificial intelligence).

 In general, Industry 5.0 assumes that human capital is the main value and occupies a decisive place in the organizational and production process; that the creative potential of specialists in cooperation with efficient, intelligent and precise machines will provide an increase in the quality of resource conservation, as well as more ecological and efficient production solutions compared to Industry 4.0.

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Published

2024-03-28

How to Cite

CHAIKOVSKA І., TKACH Т., & POPERECHNYI Б. (2024). TRANSFORMATION OF THE ROLE OF HUMAN CAPITAL IN THE CONDITIONS OF THE DIGITAL ECONOMY. MODELING THE DEVELOPMENT OF THE ECONOMIC SYSTEMS, (1), 189–194. https://doi.org/10.31891/mdes/2024-11-27