This in-depth article explores how Artificial Intelligence is transforming the education sector worldwide. It highlights key applications such as personalized learning, intelligent tutoring, predictive analytics, and administrative automation. The article also discusses the benefits of AI—including accessibility, efficiency, and data-driven insights—as well as ethical concerns and implementation challenges. Special focus is given to the Arab region’s initiatives, including Saudi Arabia’s Vision 2030 and the UAE’s AI strategy. It concludes with recommendations for ethical, inclusive, and effective integration of AI in education systems.