Artificial Intelligence is an integral component that drives digital transformation, which involves leveraging digital technologies to reshape business operations, processes, and customer experience. AI-powered automation tools can help businesses streamline processes, reduce costs, and improve their efficiency. This paper discusses the influence of digital transformation and artificial intelligence in business in terms of efficiency, productivity, and customer satisfaction. It also highlights the challenges that businesses face when there is digital transformation for change management and the risk of disruption. Digital transformation is a complex and challenging process, but it can be a valuable tool for businesses that want to remain competitive in the digital age.