This Human Resources Management report, prepared for an MBA module at the University of Wales, examines the profound impacts of digital transformation and Artificial Intelligence (AI) on HRM. The report delves into various aspects, including the changing role of people management, organizational implications of digitalization, HR challenges in business transformation, and the application of AI to encourage healthier behavior. It reviews articles, identifies key impacts (both positive and negative) of applying digital technologies, and highlights crucial challenges faced by HRM leaders. The report offers strategies, insights, solutions, and culminates in fully justified recommendations and an implementation plan, covering areas such as talent management, employee engagement, and development, with a focus on how to lead, attract, motivate, and retain staff in the digital age, serve stakeholders, and drive performance effectiveness. References are provided to support the analysis.