The advent of artificial intelligence (AI), much like the dot-com revolution, is profoundly transforming industries worldwide, with significant impacts evident in the field of education. AI technologies are increasingly utilized in areas such as coding, data management, data structuring, data mining, video editing, and photo editing. A notable innovation is the development of AI-powered learning chatbots that assist students in understanding concepts and responding to inquiries, rather than simply providing answers. Furthermore, AI is leveraged by educators and professionals to enhance creativity and streamline project workflows, reducing time spent on tasks. This paper aims to critically analyze the overall impact of AI on teaching, learning, and assessment practices, with an empirical focus on higher education and a theoretical exploration of both K–12 and higher education contexts. The study’s key contribution is its evaluation of AI’s influence on the education sector, while also identifying areas for improvement to create more effective and enriching learning environments for both students and educators.