The proliferation of online higher education has underscored the need for innovative approaches to enhance student learning, engagement, and success. This paper explores the transformative potential of artificial intelligence (AI) in revolutionizing online education. By focusing on personalized learning, AI-driven assessment, and student engagement, this research investigates how AI technologies can create tailored educational experiences, optimize learning outcomes, and foster a dynamic online learning environment. The study delves into the implementation of AI-powered tools, such as intelligent tutoring systems, adaptive learning platforms, and predictive analytics, to address individual student needs, provide timely feedback, and promote active participation. Through a comprehensive analysis of the existing literature and emerging trends, this paper aims to identify key challenges, opportunities, and best practices for leveraging AI to optimize online higher education, ultimately contributing to improved student satisfaction, retention, and academic achievement.