Artificial Intelligence (AI) is rapidly transforming the educational landscape, reshaping the roles of educators, the experiences of learners, and the very methodologies of instruction. This research paper provides a comprehensive analysis of the multifaceted impact of AI on education. It explores how AI-driven tools, such as Intelligent Tutoring Systems (ITS), adaptive learning platforms, and automated assessment software, are enabling hyper-personalised learning pathways that cater to individual student needs, pace, and preferences. The paper examines the evolving role of the teacher from a primary knowledge disseminator to a facilitator, mentor, and curator of AI-enhanced learning environments. It investigates the emergence of novel teaching methods, including data-driven instruction, AI-powered collaborative learning, and immersive experiences via AI-generated content. Furthermore, the study critically addresses significant challenges, including data privacy concerns, algorithmic bias, the digital divide, and the necessity for robust teacher professional development in AI literacy. A review of empirical evidence demonstrates positive outcomes in student engagement and mastery, but also highlights areas requiring caution. The paper concludes that AI holds profound potential to democratise and enhance education but emphasises that its ethical and equitable integration must be guided by human-centred pedagogical principles to truly augment, rather than replace, the human elements of teaching and learning.