Main problem: In today’s environment, economic growth is closely tied to the adoption of digital technologies across various reproductive processes, giving rise to the concept of the "digital economy." Recently, there has been an increasing interest from researchers and experts in this area, leading to a multitude of scientific and media publications. Nonetheless, even with the growing number of studies, the understanding of digitalization processes within the economy is still at a relatively superficial level. Objective: This article analyzes the current level of digitalization in Kazakhstan's industry and explores the prospects for its further development. It identifies key challenges the country faces in the process of digitalization, including the lack of qualified personnel, the need for infrastructure modernization, and the creation of conditions to stimulate investment in new technologies. Methods: To comprehensively analyze the challenges and prospects of digitalization in Kazakhstan, qualitative data assessment, analytical methods, and deduction were used, including in depth studies with key stakeholders, examination of international experience, and analysis of infrastructure, educational initiatives, and regulatory frameworks. Results and Their Significance: In conclusion, the importance of a comprehensive approach to addressing these issues is emphasized for achieving success in the digital transformation of Kazakhstan's economy.