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Features and Prospects of Digital Modernization of Social Protection in Ukraine
Soboliev V. M., Khoroshev M. І.

Soboliev, Volodymyr M., and Khoroshev, Maksym І. (2025) “Features and Prospects of Digital Modernization of Social Protection in Ukraine.” Business Inform 11:205–216.
https://doi.org/10.32983/2222-4459-2025-11-205-216

Section: Information Technologies in the Economy

UDC 336.5:364.7

Abstract:
The article presents a comprehensive analysis of the digital transformation of Ukraine’s social protection system in the context of recent global challenges and the internal socioeconomic crisis caused by the war, internal population displacement, increasing inequality, and demographic pressures. It is substantiated that digitalization of social protection is not merely a technological process but also a strategic institutional change affecting the architecture of governance decisions, the logic of resource allocation, principles of targeted assistance, and citizens’ trust in the State. The study examines the current state of the digital ecosystem, covering components such as the Unified Social Sphere Information System (USIS), the Diia platform, social service registries, electronic personal accounts, and digital IDs. It has been found that the key challenges remain solution fragmentation, the absence of a unified data architecture, weak interagency coordination, and the threat of technocratization of processes. The potential for implementing innovative tools has been examined separately: artificial intelligence, big data analytics, blockchain solutions, and smart contracts. It has been demonstrated that their combination can provide automated, personalized, and transparent assistance, reducing the risk of corruption and accelerating responses to social needs. At the same time, it is emphasized that the effectiveness of such solutions is not possible without ethical regulation, adaptive appeal mechanisms, and socially sensitive algorithms. Attention has been paid to the issue of digital inclusion: the population’s insufficient digital literacy, access barriers in rural areas, and difficulties faced by the elderly, internally displaced persons, and people with disabilities. The necessity of hybrid service models, digital education programs, and regulatory consideration of the interests of vulnerable groups is highlighted. In the final part of the article, a scenario-based forecasting of digital social protection development up to 2030 is proposed (pessimistic, baseline, and optimistic scenarios), including the determination of institutional conditions for their implementation. It is concluded that the true efficiency of digital transformation lies not only in technological modernization but also in the State’s ability to ensure equality, fairness, transparency, and trust – that is, a new quality of the social contract in the digital era.

Keywords: digital transformation, social protection, digital inclusion, electronic platforms, platform employment, big data, blockchain, artificial intelligence, scenarios.

Bibl.: 33.

Soboliev Volodymyr M. – Doctor of Sciences (Economics), Professor, Professor, Department of the Economic Theory and Economic Methods of Management, V. N. Karazin Kharkiv National University (4 Svobody Square, Kharkіv, 61022, Ukraine)
Email: [email protected]
Khoroshev Maksym І. – Postgraduate Student, V. N. Karazin Kharkiv National University (4 Svobody Square, Kharkіv, 61022, Ukraine)
Email: [email protected]

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