This systematic review explores the impact of digital transformation on public service delivery, emphasizing its benefits, challenges, and the role of technology and governance in addressing these issues. The study analyzed a wide range of literature and case studies from various countries, highlighting the transformative potential of digital technologies in improving efficiency, citizen engagement, and government accountability. Digital transformation is driven by the need to enhance service delivery, meet citizen expectations, and respond to higher authority demands. However, it also presents challenges such as digital divides, data security, and the ethical use of artificial intelligence (AI). The review underscores the importance of technological readiness, citizen engagement, and the development of robust governance frameworks to ensure the responsible and effective implementation of digital initiatives. Key findings include the benefits of digitalization in improving service delivery, enhancing governance, and fostering citizen-centric approaches. The study also highlights the need for comprehensive strategies to address challenges such as data governance, AI implementation, and ensuring equitable access to digital services. The integration of AI and big data technologies is shown to enhance decision-making and service personalization, but requires careful management to avoid biases and ensure transparency. The review concludes that successful digital transformation in public service delivery requires a balanced approach that considers both the potential benefits and the associated risks, ensuring that digital initiatives are inclusive, secure, and aligned with the needs of citizens.This systematic review explores the impact of digital transformation on public service delivery, emphasizing its benefits, challenges, and the role of technology and governance in addressing these issues. The study analyzed a wide range of literature and case studies from various countries, highlighting the transformative potential of digital technologies in improving efficiency, citizen engagement, and government accountability. Digital transformation is driven by the need to enhance service delivery, meet citizen expectations, and respond to higher authority demands. However, it also presents challenges such as digital divides, data security, and the ethical use of artificial intelligence (AI). The review underscores the importance of technological readiness, citizen engagement, and the development of robust governance frameworks to ensure the responsible and effective implementation of digital initiatives. Key findings include the benefits of digitalization in improving service delivery, enhancing governance, and fostering citizen-centric approaches. The study also highlights the need for comprehensive strategies to address challenges such as data governance, AI implementation, and ensuring equitable access to digital services. The integration of AI and big data technologies is shown to enhance decision-making and service personalization, but requires careful management to avoid biases and ensure transparency. The review concludes that successful digital transformation in public service delivery requires a balanced approach that considers both the potential benefits and the associated risks, ensuring that digital initiatives are inclusive, secure, and aligned with the needs of citizens.