Digital modernization is one of the key directions of the state project of Azerbaijan. As is known, digitalization is the process of converting analog data and work processes into a digital format. It includes the use of digital technologies to automate business processes, improve the quality of services, optimize production and increase the efficiency of organizations and enterprises in general. Digitalization is developing in several directions, such as economy, education, and is currently at the stage of implementation in the system.

Digitalization of the economy is a modern stage in the development of scientific and technological progress, which consists in the introduction of a certain type of innovation in real economic practice.

The concept of digital economy appeared in the last decade of the XX century. In 1995, Nicholas Negroponte used the metaphor of the transition from processing atoms to processing bits, noting the disadvantage of classical goods in their "physical" embodiment (weight, raw materials, transportation) and the advantages of the new economy.

The digital economy also qualifies as "intangible capitalism," which promotes inequality and social division. In 2017, Haskell and Westlake published the book Capitalism without Capital, which raises concerns about the inability of policymakers to adapt to the transition from the traditional economy to the new economy based on intangibles.

Azerbaijan actively participates in international forums promoting the exchange of experience and cooperation in digital transformation and reintegration of the economy. The digitalization of the economy in Azerbaijan contributes to sustainable development and the well-being of citizens. Advances in digital consciousness and reintegration processes make Azerbaijan an example for other countries striving for digital progress and human capacity building.

Digitalization of education is an educational and upbringing activity based on a predominantly digital form of presentation of educational and management information, as well as modern technologies of its storage and processing, allowing to significant improvement in the quality of the educational process and its management.

The digital education system assesses students' knowledge more transparent and informative. This is facilitated by real-time knowledge checks and automatically generated reports.

For example, the Digital Skills project is realized in 202 educational institutions in Azerbaijan. The implementation of this project makes it possible to make the learning process differentiated, to build it taking into account the needs of each individual student, corresponding to the level of training, and thus improve the quality of education.

Digitalization of government bodies and organizations makes it possible to increase the efficiency of public administration and significantly improve the quality of public services provided to citizens.

Over the past few years, the market for IT solutions for the digitalization of public authorities has grown significantly in Azerbaijan. For example, in 2010, the Egov service was created, and on March 28, 2011, it was put into permanent operation on the Internet. Currently, ministries and other state bodies of Azerbaijan provide online services through the Egov portal. Egov provides an opportunity to obtain state licenses, make payments to state bodies, receive official documents, certificates from various state bodies online.

After Egov, one of the most famous digitalization can be called the state service ASAN ( Azerbaijan Service and Assesment Network). ASAN service was established by the decree of the President of the Republic of Azerbaijan Ilham Aliyev on July 13, 2012 with the aim of reducing additional costs and time wastage of citizens, observing ethical norms and polite communication with them, further increasing professional level, transparency. ASAN includes several state bodies serving citizens.

Also, the creation of online portals and systems such as Asan and Egov az prevents corruption. Using the above-mentioned portals, to obtain any document, one has to pay only the state fee and not any other amount. This has a good effect on the economy of the state.

Digitalization aims at complete digital transformation of the entire human life by adopting digital technologies. If the goals of digitalization are successfully achieved, human civilization will reach a qualitatively new level.

Digitalization will also play an important role in Azerbaijan's successful policy of transition to green energy. After the liberation of Azerbaijani lands (Garabagh) from Armenian occupation, Azerbaijan has been actively working on digitalization and building infrastructures in the liberated lands. Azerbaijan aims to increase the level of internet connectivity of the population by 2024. A cybersecurity strategy has been developed, emphasizing data privacy legislation. This will facilitate the process of digitalization in the region (Garabagh).

Digitalization has many advantages, but there are also disadvantages. For example, the disadvantages of digitalization include:

Cybercrime and cyberterrorism ... - are traditional crimes such as fraud, deception, extortion, blackmail, but committed via the Internet and/or using malware and computing devices.

Unemployment and the displacement of humans by robots ... The displacement of people from the production process, replacing them with automated and robotic machines and production lines, thus freeing up resources for the development of the service sector.

Technological disruption and digital polarization ... Polarization exists everywhere: both in the wilderness and in civilized societies. Some nations are rich while others are poor. The same happens in the field of technologization and digitalization: some countries spread their influence through transnational IT giants, while others lack the means and capacity to provide the population with internet and devices.

Digital and technological slavery ... - is a modern type of exploitation of people based on the use of modern information technology and the internet. It includes various forms of exploitation where people are forced to work under conditions of digital dependence and control.

Total control and lack of privacy ... - is the tracking of a person's movements, purchases, payments, undergoing medical procedures, receiving social assistance, other legally and socially significant actions and personal life.

The development of the digital economy is a priority for Azerbaijan, and the greatest emphasis is placed on centralization of e-services and digitalization of public services. Digital transformation appears as a priority in the government's socio-economic strategy.