The aim of this paper is to explain the emergence of digital transformation in all aspects of business and at the same time to show how digital transformation has changed education. It all starts with the advent of computers and the Internet, which lead to the advent of digitization. It enables the conversion of analog to digital, therefore storing and sharing data has become fast and easy. By using digital data, business processes become easier, which leads to the emergence of digitization, which means the process of transitioning to digital business. Digitization and digitization are prerequisites for digital transformation that goes far beyond technology. Digital transformation not only changes the way of doing business, but also completely changes the way people think. Croatian companies are gradually introducing digital technologies into their operations. Proof of this is DESI, which is published by the European Commission in order to monitor the progress of the countries of the European Union (EU) in the form of their digital competitiveness. As in companies, changes also occur in education. The reason for this is the new Z and Alpha generations who were born and grew up with digital technology. The emergence of the COVID-19 pandemic greatly benefited precisely those generations, because there was a rapid increase in e-learning and the use of other various technological solutions for the implementation of digital transformation in education, such as: artificial intelligence, augmented and virtual reality and the best possible technological equipment of smart the classroom. Despite the numerous advantages of the mentioned technologies, there are also potential disadvantages that you should be aware of. Through numerous projects and equipping schools with digital equipment, the Republic of Croatia strives to follow the trends of the digital transformation of education.