Functions and dynamics of artificial intelligence in modern conditions
Givi Talakvadze
Doctor of Physical and Mathematical Sciences; Head of Department, I. Zhordania Center for the Study of Natural Resources and Productive Forces, GTU
Joseph Archvadze
Doctor of Economics; Professor, Central European University
Abstract
Effectively overcoming the challenges facing Georgia requires a qualitative improvement in the country’s integrated resource management system, which is impossible without a substantial increase in the efficiency of integrated resources. This is closely linked to the utilization of artificial intelligence (AI) capabilities. AI enables rapid analysis of large volumes of data, identification of trends, forecasting, optimization of resources, reduction of risks, and efficient process management, while increasing system transparency and effectiveness. Its applied value is particularly evident in the development of innovative ecosystems. It accelerates research and development processes, creates new products and services, and enhances economic competitiveness. At the same time, AI represents a significant factor in global technological competition and determines countries’ positions within the international system.
Globally, approximately 16–17% of the population uses generative AI; in developed countries, usage reaches 24.7%, while in developing countries it is only 14.1%. In Georgia, this figure is approximately 18.2%.
Against this background, the world is transitioning to the so-called stage of “innovative pragmatism,” where the essence of innovation is defined not only by novelty but also by practical effectiveness and the implementation of optimal management models. One practical manifestation of this approach is the prioritization of production and logistics flows over purely political interests.
A particularly significant transformation is taking place in the field of education, where artificial intelligence has fundamentally reshaped the system. Its educational and applied value is determined by its ability to generate, process, disseminate, and effectively utilize knowledge. AI has created a qualitatively new environment, making educational processes more personalized, accessible, and efficient, shifting from standardized teaching models to individualized and adaptive systems. Virtual classroom environments, adaptive learning platforms, intelligent tutoring systems, and assessment tools are significantly transforming both teaching practices and educational management.
Georgia’s economic system currently represents a hybrid model that combines elements of different historical and systemic formations. Although the foundations of market infrastructure have been established and the private sector plays a dominant role, significant components of the economic system remain distorted. A substantial portion of capital is not fully engaged in reproduction processes, labor resources are not fully adapted to new demands, and land resources are used inefficiently, which is particularly reflected in the low productivity of the agricultural sector.
Under these conditions, defining the country’s development strategy should be based on modern scientific knowledge and analytical approaches. Science provides the means to select optimal directions from alternative development paths and to adjust practices in a timely manner.
Alongside the rapid spread of AI, digital inequality is also increasing rapidly, while competence and proper usage lag behind overall adoption-usage remains largely superficial.
The large-scale use of artificial intelligence is also associated with certain challenges. It is essential to uphold ethical standards (such as algorithmic fairness, privacy protection, and data security) and to reduce technological inequality. Otherwise, the use of AI may deepen social inequality and generate new types of risks. One of the main risks relates to the issue of control-whether humans will be able to manage and regulate the systems they themselves have created. From a social perspective, AI may contribute to rising unemployment, increased inequality, and greater societal polarization.
The rapid and large-scale integration of artificial intelligence into virtually all areas of public life and the economy requires the adoption of legal and ethical regulatory frameworks to ensure privacy, fairness, and objectivity.
References
- Archvadze, Ioseb. “Post-Soviet Countries in the Post-Independence Period.” Social Economics 6 (2013): 15–27. (in Georgian)
- Papava, Vladimir. The Economy of Georgia: Reforms and Pseudo-Reforms. Tbilisi: Intellect, 2015. (in Georgian)
- Talakvadze, Givi. “The Georgian People Deserve a Better Present and Future.” IPN, “Opinion,” 2012. (in Georgian)
- Talakvadze, Givi. “The Georgian Economy Has Growth Potential.” New Generation, 2019. (in Georgian)
- Talakvadze, Givi. 30 Years - Georgia on the Threshold of the Fourth Decade of Restoring State Independence. Tbilisi: Necker, 2020. (in Georgian)
- Talakvadze, Givi. “COVID-19 Pandemic - Lessons and Challenges.” Business Engineering 3 (2020): 49–54. (in Georgian)
- Talakvadze, Givi. “Integral Resource Management - A Key Condition for the Country’s Sustainable Development.” International Scientific-Practical Conference, GTU, Tbilisi, 2021. (in Georgian)
- Talakvadze, Givi. “Universal Integral Resources: New Visions and Approaches.” Business Engineering 3–4 (2021): 207–211. (in Georgian)
- Talakvadze, Givi. “Optimization of Integral Resource Use Management - A Key Condition for the Country’s Sustainable Development.” Georgian Production Forces and Natural Resources 1, no. 2 (2022): 54–64. (in Georgian)
- Talakvadze, Givi, and Giorgi Talakvadze. “The Neo-Industrial Paradigm of Resource Potential.” Economic Profile 18, no. 124 (2023): 66–72. (in Georgian)
- Talakvadze Givi, and Paata Koghuashvili. “The Formation of a New World Order and Its Connection with the Potential of Integral Resources.” Economics 1 (2023): 3–12. (in Georgian)
- Talakvadze Givi, Paata Koghuashvili. “The Balance of Intentions and Circumstances - the Basis of an Effective Management System.” 2023. http://gtu.ge (accessed: 05.08.2023). (in Georgian)
- Talakvadze Givi, and Ioseb Archvadze. Integral Resources of Georgia. Tbilisi: SEU, 2025. (in Georgian)
- Talakvadze Givi, and Ioseb Archvadze. The Importance of Georgia's Integral Resources. “New Economist”, N2(77), 2025, Vol. 20, Issue 2, pp. 119-120 (in Georgian)
- Talakvadze, G., & Archvadze, I. (2023). Integral Resources of Georgia: Research, Analysis, Prospects. Tbilisi: Mtsignobari, p. 369. (in Georgian)
- AI and jobs. A review of theory, estimates, and evidence. R. Maria del Rio-Chanona, Ekkehard Ernst, Rossana Merola, Daniel Samaan, Ole Teutloff. - 18.09.2025. - https://arxiv.org/abs/2509.15265?utm_source=chatgpt.com
- AI Can Lift Global Growth. MARCELLO ESTEVAO. - March 2026. - https://www.imf.org/en/publications/fandd/issues/2026/03/point-of-view-ai-can-lift-global-growth-marcello-estevao?utm_source=chatgpt.com
- Ranked: The Countries Adding the Most to Global GDP (2026–2030). - https://www.visualcapitalist.com/ranked-the-countries-adding-the-most-to-global-gdp-2026-2030/
- Talakvadze Givi, Zurab Lomsadze, and Iosif Archvadze. „Приоритеты и ресурсы Грузии: мифы, история, перспективы.“ Экономика природопользования и устойчивое развитие 8, no. 27 (2020).
20. Talakvadze Givi. „Социальные, экономические и мировоззренческие последствия пандемии COVID-19.“ Science of Europe 3, no. 60 (2020): 44–50.
21. Talakvadze Givi, Otar Paresishvili, and Valentina Mirzoeva. „Ресурсный потенциал экономической реформы в условиях глобальной нестабильности.“ Труды Института Философии и Социологии АН Азербайджана. Баку, 2022: 118–140.
22. Karchava, L., Nanuashvili, I., Zoidze, G., & Veshapidze, S. (2025). Georgia’s Strategic Role in Eurasian Transport and Digital Logistics Transformation. The New Economist, 20(2), 40-53.
23. Karchava, L., Veshapidze, S., & Tsikelashvili, S. (2025). Georgia's Perspective in the Context of Developing Economic Relations between China and the European Union. The New Economist, 20(1), 8-23.
24. Karchava, L., Chiabrishvili, K., Goroshidze, G., Mgeladze, L., & Veshapidze, S. (2026). Indicators of effective use of the rich experience of academic staff. The New Economist, 20(4), 21-35.
25. Veshapidze, S., & Karchava, L. (2022). Contradictions of Globalization under the COVID-19 Pandemic. Bull. Georg. Natl. Acad. Sci, 16(4), 152-157.
26. Leonhardt, Megan. “The AI Paradox: Heavy AI Usage Makes Workers Feel Less Productive.” Barron’s, March 25, 2026. Read article
27. Thompson, Polly. “Researchers Asked Almost 50,000 People How They Use AI. Over Half of Workers Said They Hide It from Their Bosses.” Business Insider, April 29, 2025. https://www.businessinsider.com/kpmg-trust-in-ai-study-2025-how-employees-use-ai-2025-4
28. Fisher, Jon. “74% Use AI on the Job. Only 33% Know What They’re Doing.” Lifewire, August 11, 2025. https://www.lifewire.com/ai-productivity-training-gap-11788436
29. Microsoft. “Global AI Adoption in 2025-A Widening Digital Divide. AI Diffusion Report 2025.” 2025. https://www.microsoft.com/en-us/corporate-responsibility/topics/AI-Economy-Institute/reports/Global-AI-Adoption-2025/
30. https://shromebi.gtu.ge/admin/uploads/2(536)/06-Talakvadze.pdf UDC 004 UAK SCOPUS Code 1405 https://doi.org/10.36073/1512-0996-2025-2-55-80 Givi Talakvadze and Joseph Archvadze, “Development of Digital Technologies and the Potential of Integral Resources as a Determining Factor of Georgia’s Sustainable Development.” Proceedings of the Georgian Technical University, 2025, No. 2, p.55–80. (in Georgian)
The New Economist, N1, 2026, Vol. 21, Issue 1.
04/04/2026
Copyright (c) 2026 Givi Talakvadze, Joseph Archvadze
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.