This review provides an extensive analysis of the integration of Artificial Intelligence (AI) within the educational sector, drawing from a multi-disciplinary corpus of recent academic literature. As digital transformation accelerates, AI has transitioned from a peripheral technological tool to a core driver of pedagogical innovation. This paper examines the evolution of Intelligent Tutoring Systems (ITS), the shift toward hyper-personalized learning environments, and the automation of complex administrative hierarchies. Furthermore, it delves into the socio-technical challenges inherent in AI adoption, including algorithmic transparency, data sovereignty, and the "digital divide" in emerging economies like India. By evaluating case studies and empirical data from diverse global contexts, the review outlines a strategic roadmap for the ethical and sustainable implementation of AI, emphasizing the indispensable role of the human educator in an increasingly automated world.