The proliferation of artificial intelligence (AI) and the rapid digitization of content have drastically transformed how intellectual property is created, distributed, and infringed. In today's borderless virtual environment, digital piracy has evolved into a sophisticated challenge that not only bypasses traditional enforcement mechanisms but also raises novel legal and ethical questions. This paper examines how AI both contributes to and combats digital piracy, analyzing its dual role in the modern copyright enforcement ecosystem. On one hand, AI-powered tools are used to automate piracy through content replication, scraping, and real-time redistribution; on the other, the same technology underpins detection algorithms, watermarking systems, and digital rights management (DRM) frameworks. The study further explores international legal instruments and national legislations, highlighting their limitations in regulating AI-driven piracy across jurisdictions. Through case analysis and comparative legal review, the paper argues for a harmonized and technologically adaptive copyright enforcement strategy. The findings suggest that while AI presents unprecedented risks, it also offers unique opportunities to reshape copyright governance in the digital age—provided that legal systems evolve in tandem with innovation.