Abstract: The rapid evolution of cyber threats has underscored the urgent need for advanced cybersecurity solutions, prompting significant interest in the application of Artificial Intelligence (AI) technologies. As cyberattacks grow in sophistication and frequency, organizations are increasingly turning to AI for its ability to analyze vast amounts of data at unprecedented speeds. This review explores the dual facets of AI in cybersecurity—its transformative potential and the challenges associated with its implementation. We analyze how AI can enhance threat detection by identifying patterns in network traffic that may indicate malicious activity, automate responses to incidents through the use of AI-driven security orchestration tools, and improve risk assessment by leveraging machine learning and predictive analytics to forecast potential vulnerabilities. However, the integration of AI also raises critical concerns, including data privacy issues, as AI systems often require access to sensitive information to function effectively, ethical implications related to bias in algorithmic decision-making, and the technical limitations of AI systems that may hinder their reliability in complex, dynamic environments. Additionally, the skills gap in the cybersecurity workforce presents a barrier to effective adoption, as many organizations struggle to find qualified personnel capable of implementing and managing AI technologies. By examining current research and case studies, this paper highlights the need for ethical guidelines to govern the use of AI in cybersecurity, robust training programs to equip the workforce with necessary skills, and collaborative efforts across sectors to fully harness AI’s capabilities in safeguarding digital infrastructures. Ultimately, this review emphasizes the importance of addressing these challenges to realize the promise of AI in creating a more secure digital landscape, fostering resilience against future cyber threats while ensuring that ethical standards and privacy protections are upheld