Digital Transformation vs AI Transformation for Saudi Enterprises. Digital transformation is the process of digitising processes, moving to cloud systems, and building data infrastructure. AI transformation is the next stage — using AI to analyse that data, automate decisions, and create new value from digital capabilities. Saudi enterprises and government entities often conflate the two, leading to AI initiatives that fail because the underlying digital foundation is not ready. This article clarifies the distinction and provides a sequencing framework for Saudi organisations.