Recently, there has been increased incorporation of artificial intelligence in the education system, which has impacted the practice and use of assessment in learning. To this end, the following is a paper discussing the role of AI in grading, instant feedback, and personalized adaptive testing. The paper also covers the ability of AI to minimize bias and introduce fairness while grading, as well as the ability that comes with the mass LMS platforms. Moreover, this paper discusses the issues and guidelines regarding the ethical use of AI in education: data protection, the problem of automated prejudice in AI, and the replacement of human tutors. When these seemingly unimportant problems are solved, and institutions admit that ethical practices are critical, such opportunities for Artificial Intelligence can be harnessed to make learning more efficient and fairer. At last, integrating AI into learning benefits teachers and students: it enhances the teaching and learning processes. It creates the prospects for the future global exposition of technology with human creativity to enrich learners.