Dr. Srividya Aravind 03 04(1) The rapid advancement of Artificial Intelligence AI and automation is transforming the way organizations operate compete and are managed in the digital era These technologies are transforming the traditional leadership models by making it possible to make decisions that are based on data enhance the efficiency of operations and make innovation a reality across industries The review paper discusses how digital leadership will increase in role in organizational management in the era of AI and automation The review paper examined the theoretical underpinnings of digital leadership emphasizing the role of the integration of technologies and digital skills and vision in contemporary leadership It also examines the effects of AI and automation on leadership roles such as improved decisionmaking workflow optimization and worker redesign Besides that the paper outlines the main issues related to the adoption of AI including ethical concerns the impact of algorithms a threat to data privacy and the necessity of retraining employees The literature review is done thoroughly to investigate the current studies focusing on AIbased leadership and the new models of leadership The findings suggest that an effective digital leadership is a moderate approach that does not only entail technological skills and capabilities but ethical leadership and management that takes into consideration human being The paper ends with managerial implications and recommendations to organizations that seek to successfully pass through the digital transformation in the AIenabled environment Copyright (c) Journal of Science Engineering Technology and Management Science. All rights reserved 2026