Digital transformation involves integrating digital technologies into all areas of a business, fundamentally changing how the organization operates and delivers value to customers. This process includes adopting technologies like AI, cloud computing, and data analytics to improve efficiency, enhance customer experience, and stay competitive.

For instance, a retail company might implement digital transformation by using data analytics to personalize customer experiences, deploying AI for inventory management, and leveraging cloud computing for scalable IT infrastructure. Digital transformation enables organizations to respond quickly to market changes and innovate continuously.