Artificial intelligence (AI) is technology that enables computers and machines to simulate human intelligence and problem-solving capabilities. Artificial Intelligence has been used commendably in numerous areas like Marketing, Healthcare, agriculture, education, banking, entertainment, Industries etc. Due to a lot of advancements in computing and information processing technologies, Artificial Intelligence has extensive applications in education sector. AI has valuable implications for learners, educators, policy-makers and other stakeholders in the education field. This article reviews the role of AI in education and explores the impact of AI on education by analyzing its effects on teaching, learning, assessments, administration, and future careers. AI is transforming learning as well as teaching process to a great extent. AI has the potential to revolutionize education by personalizing teaching methods to suit individual student needs, providing prompt feedback, and automating administrative tasks. It can also assist in grading and assessment, freeing educators to focus on developing curriculum and providing quality instruction. As in the future the requirement of technically trained human resources is undoubtedly going to increase, many researchers’ emphasis on the effectiveness of AI in helping graduates to develop requiring skills for their future careers. Although AI is transforming education system in so many constructive manners but There are several challenges as well, like privacy issues, technical feasibility, accessibility, regulatory concerns, ethical issues, infrastructural issues etc. Even though dealing with all the challenges, AI is playing a significant role in transforming the education sector according to future needs.