DIGITALIZATION AS A FACTOR OF SOCIO-ECONOMIC TRANSFORMATION OF SOCIETY

Digitalization represents a socio-economic phenomenon that reshapes lifestyles and economic behavior. Its active development allows for the well-grounded and balanced use of economic policy instruments aimed at strengthening the national economy and promoting social development. The purpose of this study is to determine the role of digitalization as a key factor in the socio-economic transformation of society and to substantiate the mechanisms through which it influences the economic system and the economic behavior of society. Based on the analysis of the Digital Transformation Index and the Telecommunications Infrastructure Index, the current state of digital transformation in Ukraine is assessed. To model the dynamics of the Telecommunications Infrastructure Index and identify digitalization trends, the least squares method is applied to construct a linear time-series model. On the basis of the estimated regression model, a short-term forecast of digitalization processes is developed. The findings indicate that digitalization acts as a socio-economic phenomenon that fundamentally transforms lifestyles and the economic behaviour of citizens. This approach enables the rational and balanced application of economic policy instruments to influence national economic development. At the same time, particular attention is paid to risks associated with digitalization, including threats to information security, disclosure of personal data, and vulnerabilities related to the commercial, technological, and financial activities of firms and companies. The study also identifies the core principles underlying the transformation of social relations under the impact of digitalization. Given the evolutionary features of the modern digital economy, there is a continuous need to monitor emerging technologies, as well as the benefits and risks associated with their implementation, responding promptly to new challenges. This approach supports the adoption of technologies that have been tested and proven effective in the market for information goods and services.