This study examines the implications of digital welfare policies for citizens’ lives and rights in an era of digital transformation increasingly shaped by artificial intelligence and data technologies. Digital technologies can enhance the efficiency and accessibility of welfare services, but they may also generate new forms of inequality, exclusion, and rights infringement. Drawing on literature and policy reviews, expert Delphi surveys, case analyses, administrative data analysis, and focus group interviews, this study assesses the current state of digital welfare in Seoul. The findings suggest that digital welfare should be understood as a rights-based welfare policy domain centered on citizens’ needs and lived experiences, rather than as a technology-driven initiative. While Seoul’s digital welfare programs have improved service delivery and outreach, their effectiveness is limited by fragmented implementation, weak institutional foundations, digital access and capability gaps, and growing burdens on frontline workers. The study concludes that digital welfare should be guided by social rights, self-determination, privacy, and accountable governance to improve citizens’ quality of life.