Artificial Intelligence (AI) is fundamentally reshaping educational paradigms, transitioning traditional learning environments into adaptive, data-driven ecosystems. This paper examines the applications, benefits, and risks of AI in education, moving beyond descriptive accounts to interrogate the ethical, pedagogical, and equity-related implications. Drawing from contemporary literature and real-world implementations, it highlights how AI enhances personalized learning, supports accessibility, and improves administrative efficiency. However, significant challenges persist, including threats to data privacy, the reinforcement of algorithmic bias, the erosion of human interaction, and widening digital divides. By incorporating a critical perspective, this paper argues that the responsible use of AI in education requires transparent governance frameworks, equity-driven design, and stronger collaboration between educators, technologists, and policymakers. The study concludes with recommendations for future research and practical strategies to ensure that AI augments, rather than replaces, the human dimensions of teaching and learning.