In the modern digital age, organizations face unprecedented challenges and possibilities while managing the intricacies of digital transformation. Accelerated technological developments, changing customer preferences, heightened competition, and dynamic regulatory environments necessitate companies to synchronize their business goals with technological innovations. Leadership is crucial in steering businesses through changes, requiring a deep understanding of change processes and the capacity to adjust leadership accordingly. This research addresses the central question: How does leadership effectively promote organizational digital transformation? The study examines how leaders can effectively promote the adoption of advanced technologies and the promotion of innovation, by first exploring the nature of digital transformation within organizations and then analyzing the evolving dynamics of leadership in this context. An integrative review of the Web of Science (WoS) and Scopus databases was conducted, using the search terms: “Leadership” and “Digital Transformation”. The findings emphasize that effective leadership is crucial for managing the minutiae of digital transformation, integrating technology into organizational processes to facilitate learning, collaboration, and agility, enabling companies to adapt to market shifts, reduce uncertainty, and enhance decision-making for sustainable growth. By using the right tools and with the right frequency, leaders may develop team cohesion—even at a distance. Attentive digital-age leaders will know how to leverage the right mechanisms, and herein, we hope to give some indication of how that may be achieved, so that digital transformation increases rather than decreases team motivation levels.

Background: Artificial intelligence (AI) is transforming leadership and raising critical questions about decision-making, leadership capabilities, and ethical accountability in increasingly digitalized organizations. Objective: This systematic review synthesizes peer-reviewed evidence to answer: How does AI integration transform leadership and decision-making in organizations? Methods: A PRISMA 2020-compliant systematic review was conducted using structured Boolean searches in Scopus and Web of Science Core Collection on 26 February 2026. Eligibility was restricted to English-language, peer-reviewed, open-access journal articles with an explicit AI–leadership integration signal. Records were deduplicated and screened by two reviewers, with full-text assessment conducted against predefined criteria. A qualitative, narrative (conceptual) synthesis integrated heterogeneous empirical and conceptual contributions. Results: From 452 records, 84 studies met inclusion criteria. The synthesis identified three recurring analytical dimensions: (i) AI-augmented decision-making, (ii) leadership competencies and role shifts, and (iii) ethical challenges (accountability, transparency/opacity, fairness, privacy, and human agency). Integrating these dimensions, the review conceptualizes AI-driven leadership as a hybrid decision phenomenon in which AI accelerates and expands decision cycles, leaders reconfigure roles toward decision architecture and orchestration, and ethical conditions shape legitimacy, adoption, and authority dynamics. Conclusions: The review advances theory by specifying a mechanism-oriented model of AI-driven leadership and proposing testable propositions linking AI modality, role reconfiguration, and ethically conditioned legitimacy under key boundary conditions (e.g., sectoral stakes, governance capacity, and data/infrastructure readiness). Practically, it outlines an implementation pathway emphasizing decision criticality assessment, formalized human–AI task allocation, and institutionalized oversight mechanisms. Limitations: Findings are bounded by database selection and the open-access full-text constraint, which may under-represent paywalled scholarship.