In recent years, digital transformation has become a key driver of economic growth and competitiveness worldwide. The integration of advanced technologies such as artificial intelligence, big data, and cloud computing into economic systems has significantly reshaped traditional business models and market structures. This paper examines the impact of digital transformation on modern economic development, focusing on productivity, innovation, and employment. The study uses a qualitative analysis approach based on recent academic literature and global economic reports. The findings indicate that digitalization enhances efficiency, creates new market opportunities, and accelerates innovation processes, but also poses challenges such as job displacement and cybersecurity risks. The paper concludes that effective policy frameworks and investment in digital skills are essential to maximize the benefits of digital transformation.