The aim of this study is to investigate the potential for digital transformation within the realm of human resource management, specifically in the context of the digital economy. The primary focus of this research encompasses the driving forces, directions, and consequences of such digital transformation in human resource management. This study postulates that five key factors-internal customer digital needs, industry-level digital innovation, competitive challenges, digital innovation governance, and the requirements of the digital era-act as catalysts for the digital transformation of human resource management. In particular, the research underscores that the digitization of human resource management processes involves the application of cutting-edge digital technologies to functions like recruitment, training and development, and performance assessment. It’s essential to emphasize that while digital transformation yields advantages for business development, we must also consider its potential repercussions, including the process of transitioning from old to new human resource management systems and the possible adverse effects of the new system.