Digital transformation is revolutionizing academic libraries, propelling them from traditional knowledge passivity to vibrant smart libraries that actively foster knowledge creation and engagement in the digital and artificial intelligence (AI) era. This study uses The Hong Kong Polytechnic University (PolyU) Library as a case study to explore its digital transformation journey and exemplify this evolution. By leveraging cutting-edge digital technologies such as AI, Internet of Things (IoT), and immersive digital platforms, libraries can deliver personalized, flexible, and accessible learning experiences. With the majority of its resources available online and integrated with AI-powered discovery and recommendation platforms, library users interact with information in innovative ways, supporting individualized learning and interdisciplinary collaboration. The creation of smart library spaces, including technology-rich makerspaces and automated self-service facilities, further enhances users’ autonomy and creativity. AI-driven tools streamline library operations, facilitate multilingual access, and support digital humanities research, while robust open-access initiatives ensure equitable resource distribution.