The development of Artificial Intelligence (AI) and Society 5.0 has created new challenges for Islamic education policy. This study aims to analyze the response of Islamic education policy to AI and Society 5.0, identify implementation challenges, and examine their implications for digital transformation. A qualitative approach with a case study design was employed. Data were collected through in-depth interviews, observations, and document analysis involving twelve informants selected through purposive sampling. The data were analyzed thematically using NVivo 10. The findings show that Islamic education policy remains in a transitional stage, with five main issues: curriculum transformation, teacher competence, digital infrastructure, AI governance, and educational ethics based on Islamic values. While digital transformation has begun, AI competencies, teacher readiness, infrastructure equity, specific governance mechanisms, and ethical guidelines remain limited. The findings imply that Islamic education policy needs to strengthen AI regulations, teacher competence, digital infrastructure, governance, and ethical frameworks grounded in Islamic values to ensure that digital transformation remains aligned with the objectives of Islamic education.
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