Workspace digitalisation presents a transformative shift from traditional, physically bounded offices to virtual, technology-enabled environments. Digital technologies like cloud computing, artificial intelligence, and the Internet of Things enable remote collaboration, data accessibility, and operational efficiency, thereby accelerating this transformation. Digital workspaces transcend geographical limitations, enabling a more flexible, inclusive, and adaptive work culture. They offer better work–life balance, with flexible options, reduced commuting time, and increased personal autonomy and control over commitments, compared to traditional workspaces. Despite these benefits, digitalisation creates cybersecurity, data privacy, and digital divide issues, where unequal access to digital tools and skills can exacerbate social and economic inequalities. The lack of physical interaction affects team cohesion and company culture. Hence, this paper explores these phenomena to uncover their implications and consider possible strategies to optimise workspace digitalisation, providing a comprehensive systematic review of extant literature within the study context, offering pragmatic insights and recommendations for workspaces. This study has found workspace digitalisation to be a complex, multifaceted phenomenon that provides flexibility, efficiency, and innovation, but also poses challenges that must be carefully managed. It postulates that as technology and work progress, a hybrid model that blends digital and traditional workspaces would be suited to each organisation’s needs and goals.