Artificial Intelligence (AI) is fundamentally transforming the education sector by enabling personalized learning experiences, automating administrative tasks, and enhancing pedagogical methodologies. This study comprehensively explores the role of AI in modern education, focusing on its diverse applications, quantifiable benefits, and multifaceted challenges. The paper adopts a systematic qualitative approach using secondary data synthesized from peer-reviewed journals, conference proceedings, and institutional reports published between 2018 and 2025 [1], [2], [3]. A thematic analysis framework was applied to categorize findings into application domains, pedagogical impacts, ethical dimensions, and implementation barriers [11], [12], [13]. The findings indicate that AI-driven systems substantially improve learning outcomes, increase accessibility for marginalized learner populations, and reduce the administrative burden on educators. However, significant concerns persist regarding algorithmic bias, data privacy violations, digital equity, and the potential de-skilling of teachers [8], [9], [10]. The study concludes that a governance-oriented, ethically informed, and pedagogically grounded implementation strategy is essential for maximizing the societal benefits of AI in education [17], [18].