The automotive industry is undergoing a deep transformation driven by the advent of digital technologies. This thesis explores the versatile impact of digital transformation on the automotive sector, highlighting key innovations and the challenges they present. As digital technologies evolve, they are reshaping how vehicles are designed, manufactured, and used, leading to significant shifts in business models and consumer behaviors. Digital transformation encompasses a range of technologies, some of them being Machine Learning, Blockchain, Machine Learning, Artificial Intelligence and Internet of Things. These advancements are improving safety, enhancing vehicle performance and also revolutionizing customer interactions and operational efficiencies within the industry. For instance, the integration of AI, such as ChatGPT, into vehicles promises more intuitive and responsive user interfaces, upgrading the overall driving experience. However, alongside these advancements we are faced with significant challenges. Cybersecurity threats have become increasingly relevant as vehicles become more connected and autonomous. The potential for cyber attacks on critical vehicle systems exemplifies the need for strong security precaution to protect both data and passenger safety. Additionally, the ethical and socio-economic implications of AI in vehicles pose questions about privacy, job displacement and the evolving relationship between humans and machines. This thesis delves into the critical analysis of these technologies, examining their current state, potential benefits aswell as obstacles. By understanding the transformative power of digital technologies and addressing the associated risks, the automotive industry can steer this digital evolution towards a more innovative and secure future.