Artificial Intelligence (AI) is rapidly transforming various fields, including psychology. The integration of Artificial Intelligence (AI) in psychology presents transformative opportunities to enhance research, diagnostics, therapeutic interventions, and personalized mental health care. Artificial Intelligence (AI) in psychology is a rapidly developing discipline that explores how AI tools and technologies can improve psychological research, assessment, and therapeutic practices. This study critically reviews previous research conducted, emphasizing the development of AI applications within the psychological domain. A qualitative research approach was adopted, relying on secondary data sources, including scholarly articles, books, and expert insights. The findings reveal that AI has significantly advanced mental health diagnostics, facilitated the creation of therapeutic chatbots, and enabled predictive modeling of human behavior. Overall, the study underscores AI’s vital role in assisting mental health professionals and promoting more personalized psychological care.