This paper examines the phenomenon of digital literacy in correlation with its impact on individual, company, and society. It establishes the importance of digital skills for life, for the personal and operational aspects of contemporary private and corporate entities. Furthermore, it addresses the issue of digital divide and its implications for society as a whole. A comparison of digital skills in Croatia with the EU average was presented. Indicators of digital skills were analyzed and synthesized, and a comparison between countries was provided. The challenges posed by Industry 4.0 as the foundation of digital transformation are highlighted, emphasizing the significance of acquiring new knowledge and skills through lifelong learning programs. A particular challenge is the analysis of digital literacy from an economic perspective, through the development of the new (digital) economy compared to the traditional economy. The study identifies the advantages and disadvantages of the digital economy, along with its key indicators. The paper concludes by analyzing the effects of implementing digitalization and artificial intelligence on the traditional economy and employment.