Digital sculpting is a method for making detailed 3D models that’s particularly suited to organic surfaces like faces, skin, foliage, etc. This makes it a popular choice for character design (US site), turning concept art into 3D models for animation in TV, films and video games (US site).
Just like in real sculpting, a digital sculpting project starts with a piece of raw material in the software – a virtual ball of clay – and the artist uses their tools to shape details.
3D modelling is more suited to most digital art processes such as creating buildings or built objects because the geometry has straight lines or consistent curves. This allows the software to extrude each polygon across its length without extra computation to topologise the points in between.
A digitally sculpted object has an intricate polygon mesh that interacts with tools just like real clay does, but editable to a far deeper level.