Abstract: The world is changing at a rapid speed, smart data gathering, data mining systems, powered by intelligent systems, natural language processing (NLP), virtual reality, cloud computing, mobile applications and artificial intelligence (AI) are already making an impact on how tasks are performed. Also on the methods of interactions and how this is carried out amongst students themselves, students and teachers, students and systems and students and their surroundings. Already artificial intelligence (AI) is deployed to help students choose the right courses, intelligent computer systems are tailored for students’ needs, and data mining systems are already playing an integral role in education, but will AI alter teaching and learning? Does AI have a positive or a negative impact on education? In this paper AI is reviewed and identified, the impact of AI on education with a focus on AI task domains and related activities are discussed, the good, the bad and the ugly aspects of AI based on current applications and project-based approaches are described. The effect of AI on teaching in general is also reviewed, and a set of tangible recommendations for proper AI integration in education is presented.