Chapter 1 presents an overview of the key components driving digital and AI transformation. It highlights the digital foundation, supporting technologies, and their applications in industry and society. The digital foundation emerged from the convergence of communications and computers. The supporting technologies include digital platforms, digital, technologies, and AI technologies. Digital platforms enable various application services,digital technologies propel the transformation across industries, and AI technologies serve as the engine of automation and intelligence, accelerating both digital and AI transformation. The applications of digital and AI transformation in industry bring about a paradigm shift in overall business processes. However, the application in society introduces not only advantages but also challenges and negative issues that must be addressed.