In contemporary military and civilian environments, the role of camouflage patterns in providing concealment and protection is paramount. The evolution of traditional camouflage into digital formats has paved the way for innovative design techniques, and the integration of artificial intelligence (AI) has revolutionized the process. This comprehensive review paper delves into the historical context, methodologies, challenges, and prospects of AI-driven digital camouflage pattern generation systems. The review commences with an exploration of the historical development of camouflage patterns, tracing their journey from basic naturalistic designs to the intricacies of digital patterns. It emphasizes the significant shift towards digitalization, enabling greater flexibility, adaptability, and effectiveness in camouflage design. The infusion of AI into this realm has ushered in a new era of possibilities and enhancements. Key components of AI-based camouflage pattern generation are investigated in depth. The paper highlights the crucial role of data collection and preprocessing, emphasizing the necessity of diverse and high-quality datasets to train AI models effectively. It also examines feature extraction methods, showcasing how image analysis, computer vision techniques, and machine learning algorithms aid in identifying relevant patterns and textures present in various natural environments. The core of AI-driven camouflage pattern generation revolves around the selection and application of machine learning algorithms. The review provides comprehensive insights into various AI approaches, including deep learning, genetic algorithms, neural networks, and evolutionary computing, while highlighting their respective strengths and limitations in the context of camouflage pattern design. It underscores the capabilities of convolutional neural networks (CNNs) in recognizing complex patterns and textures and discusses the potential of generative adversarial networks (GANs) in generating realistic and adaptable camouflage designs. Additionally, the review addresses the critical aspect of evaluating the effectiveness of AI-generated camouflage patterns. It discusses common evaluation metrics such as detection and recognition rates, human perception studies, and real-world testing scenarios. The paper acknowledges the challenge of striking a balance between pattern effectiveness, aesthetic appeal, and human factors, emphasizing the need for holistic evaluation criteria. Despite the promise and progress in AI-based camouflage pattern generation, the review acknowledges existing challenges and limitations. These include the need for extensive and diverse training datasets, substantial computational resources, and ethical considerations surrounding the potential misuse of AI-generated camouflage patterns. Furthermore, it underscores the importance of environmental sustainability by considering the ecological impact of camouflage pattern materials and production processes. Practical applications of AI-driven digital camouflage patterns are explored across military and civilian sectors. In military contexts, AI-generated patterns offer adaptability in dynamic combat environments, enhancing the safety and effectiveness of personnel and equipment. In civilian applications such as wildlife conservation and disaster relief, AI-based camouflage patterns find utility in minimizing human and equipment visibility. In conclusion, this comprehensive review provides a panoramic view of the intersection between digital camouflage pattern generation and artificial intelligence. It highlights the transformative potential of AI in reshaping camouflage design, making it more effective, adaptable, and versatile. Looking ahead, the review outlines future research directions, including the exploration of explainable AI for pattern generation, integration of multispectral and thermal considerations, and ethical implications associated with AI in camouflage design. As AI technologies continue to advance, they hold the promise of fundamentally altering the landscape of digital camouflage patterns, contributing to enhanced concealment and protection across diverse domains and scenarios.