The article presents a systematic review of scholarly articles (n = 168) focused on digital discretion—how digital technologies affect the discretionary autonomy of street‐level bureaucrats. Two analytical tasks are performed concerning how digital transformation has affected (1) the relations between top‐down governing and the work of street‐level bureaucrats and (2) street‐level bureaucrats in the encounter with individuals. The documentation shows an expanding research area, and most articles showcase various subjectification effects when street‐level bureaucrats become screen‐ or system‐level bureaucrats. Street‐level bureaucrats are under increasing pressure from changing political rationalities consisting of streams of scientific knowledge, societal discourses, and the need for changes in governmental practices. The transformation carries political rationalities that fundamentally reshape value structures, organizing, and working methods of street‐level work. Still, the research area needs further development and consolidation. The reviewed research analyzes policies without considering the political content developed during policy initiation, formulation, and decision‐making. Instead, the research is characterized by a short‐sighted analytical perspective on how individual street‐level bureaucrats handle a changing technological development.