This research explores the impact of digital transformation on innovation in EU-27 companies, emphasizing the role of marketing software solutions in this process. Digital transformation integrates technologies like AI, IoT, and cloud computing into business operations, driving adaptation and innovation across industries such as finance, health care, and retail. The study applies machine learning and generative AI models to predict the influence of marketing technology (MarkTech) on digital transformation, utilizing Eurostat datasets to identify key technologies shaping strategies. It highlights disparities in digital adoption, proposing country-specific approaches to forecast future developments. By leveraging marketing software and other digital tools, companies experience increased efficiency, customer engagement, and productivity through automation and data analytics. However, addressing digital skill gaps remains essential for fully realizing the European Union’s digital transformation goals.