The way we teach and learn could be completely transformed by artificial intelligence (AI), which could make the process more efficient, personalized, and interesting. Artificial intelligence (AI) in education is the application of AI technologies, like natural language processing and machine learning, to improve the educational process. Through the use of algorithms, teachers are able to customize learning for each student by analyzing data, finding trends, and making predictions. Artificial intelligence (AI) and its potential impact on education have gained widespread attention because of ChatGPT's impressive performance on standardized academic assessments. For the development and implementation of AI-driven technologies in schools, colleges, and universities to be sustainable, a thorough knowledge of their effects on the current educational system is needed. The application of AI in education has a lot of potential advantages. One of the biggest benefits of AI in education is personalized learning, which allows students to learn at their own pace and in a fashion that best fits their learning preferences. This can improve student results. Chatbots, automated grading and evaluation, and intelligent tutoring systems can boost productivity, free up teachers' time, and deliver more precise and consistent feedback. Some of the challenges that need to be resolved are potential bias, cost, lack of confidence, and privacy and security concerns. AI can improve data analysis, empowering teachers to make facts-based decisions. There are some impacts of artificial intelligence in educational system that are covered in this review. These are the applications of artificial intelligence in automated assessment, intelligent tutoring systems, personalized learning, and collaborative teacher-student learning.