Digitization is driving the growth of the Spanish economy

In 2023, the digital economy represented 24.2% of Spanish GDP, representing an increase of 1.5 points compared to 2022 figures and 2.1 points compared to 2020. This acceleration is attributed to the strong growth of digitization, which is reached in 2023. 353 billion euros, getting closer to the goal of reaching 40% of GDP digitization level by 2030. This is reflected in the fourth edition.Digital Economy Report 2024', by LA Spanish Association of Digital Economy (Digital) and Boston Consulting Group (BCG).

The report assesses the value created by digitization of the economy through the aggregation of its direct, indirect and induced impact on GDP. To quantify the direct impact, a study was conducted on the wage bill and gross operating surplus generated by the digital economy, resulting in an impact of 12.3% on GDP. The indirect impact, for its part, includes the effect of digital activity on the supply chain of components for digitization, contributing about 11.1% of GDP. Finally, the induced impact, understood as the increase in economic activity derived from private consumption carried out by workers in the digital sector due to their higher disposable income, represents an impact of 0.8% on GDP. The global figure of 24.2% is the result of adding these three dimensions.

about this, Rafael Rilo, Head of BCG in Iberia, “The acceleration of digitalization is great news because it puts Spain back on the path of strong growth of the digital economy. We must remember that digitalization increases the growth of the overall economy, increases productivity and has a significant impact on social welfare.

The presentation of the report, on Monday, was attended Secretary of State for Digitization and Artificial Intelligence, Matt Ledowho during his intervention in a conversation Susanna voices, Head of Digital, has highlighted the maturity of the digital economy in Spain and improved government guidelines in this area. “As we look to the year 2024, it is clear that we will encounter an environment enriched by significant technological advances that will shape strong economic growth. The continuation of this development is visible in the path of digitization and technological innovation that Spain has actively embraced.

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As an innovation, this version of the report explores, on the one hand, the proliferation of artificial intelligence, its risks and the need to address them through responsible implementation that integrates its risks and potential benefits.

Responsible Artificial Intelligence: A Competitive Advantage

In line with the EU's recognition as a strategic technology, the report addresses the impact of AI and its potential to build on its potential to drive economic growth by increasing productivity and productivity. However, the integration of AI poses significant challenges, especially in terms of ethics, privacy and security, which will slow down its development and use by companies, research centers and public organizations.

In fact, 42% of companies say they aren't implementing the artificial intelligence they're developing because they don't have a strategy for its responsible use. To mitigate these challenges and accelerate the adoption of AI, the report proposes a responsible approach and establishes a series of guidelines to guide companies in its use.

“Responsible AI allows for the diffusion and institutionalization of this technology across companies and public administrations,” he highlighted. Caesar Tello, Director General D Digital, “In particular, incorporating responsible AI benchmarks for companies gives them a competitive advantage because it allows for early compliance with regulation, increases consumer confidence, and improves talent acquisition and retention.”

Regulation: The New Frontier of Digitization

The fourth edition of the report also focuses on analyzing how the regulatory framework and public policies in the European Union, the United States and China affect the progress of digitization. In the European Union, Digital economy A central pillar of recent policies, it has generated serious legislative action – it affects all areas of the economy in a cross-cutting way, and its implementation will be decisive for European competitiveness in the medium and long term.

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To increase this opportunity and not reduce the growth of innovation, digitization and European enterprises, the report offers Ten recommendations. These include creating a new governance model for digital regulation, promoting the use of open data, maintaining cybersecurity as a fundamental pillar, and a continued commitment to funding telecommunications infrastructure.

Likewise, the importance of strengthening public-private cooperation and planning adequate governance to guarantee competitiveness, innovation and consumer protection in companies is highlighted.

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