The relevance of the topic. The study reveals current issues in the modern field of innovation management related to the study of the possibilities of using artificial intelligence in the context of digitalization of the economic space. Purpose. The purpose of the work is to form an idea of the potential of using artificial intelligence (AI) to solve various problems of an industrial and socio-economic nature. Methodology. The theoretical and methodological basis of the study was formed by general scientific methods of cognition, as well as publications of domestic and foreign scientists devoted to the problems of development of digital services and technologies. Results and conclusions. The analytical aspects of expanding digitalization using AI systems are studied. The range of tasks solved using AI is systematized. The prospects for expanding the potential of AI and the challenges and threats accompanying these processes are substantiated. The conducted study shows that the introduction of AI contributes to the automation of processes, improving the quality of products and services, and their personalization. However, the introduction of AI raises certain concerns and risks associated with job losses, ethical issues, ensuring data security, and maintaining confidentiality. In the future, given the rapid development of technologies and their increasingly widespread use, it is important to ensure a balance between innovation and regulation of their growth and application, creating opportunities for stable and safe growth of the digital economy. Application area. The results of the study may be useful in the process of developing and implementing strategies for the development of digital services and technologies.