Abstract. Artificial Intelligence (AI) has become a transformative driver of innovation, reshaping nearly every aspect of the digital era. This paper examines the measurable impacts of AI on the modern digital world covering global economic growth, workforce dynamics, engineering applications, and ethical implications. Recent studies (2023–2025) by PwC, McKinsey, and the World Trade Organization indicate that AI could contribute up to 15% to global GDP by 2035 and generate over USD 7 trillion in business shifts by 2025. In engineering, AI enables predictive maintenance, generative design, automated coding, and intelligent project management, reducing design time by an average of 25% and waste materials by 15%. Beyond efficiency, AI enhances creativity and problem-solving capacity, enabling engineers to simulate complex systems faster and more accurately. However, ethical and environmental challenges—such as bias, transparency, and energy consumption—remain critical. This article concludes that AI not only revolutionizes the digital ecosystem but also redefines engineering practice by fusing computational intelligence with human creativity toward a more efficient and sustainable future.