The integration of artificial intelligence (AI) in e-learning has emerged as a transformative force, offering opportunities to enhance instructional methodologies, automate assessments, and provide personalized learning experiences. This systematic literature review examines recent empirical studies on AI-enhanced e-learning, focusing on its pedagogical innovations, learning outcomes, and associated challenges. Following a structured selection and analysis process, this study synthesizes findings from peer-reviewed research to identify key trends in AI applications for education, including adaptive learning systems, intelligent tutoring, and real-time learning analytics. The review highlights the potential of AI to improve student engagement, knowledge retention, and assessment accuracy, while also addressing critical challenges related to ethical considerations, data privacy, and the alignment of AI technologies with pedagogical frameworks. By providing a comprehensive analysis of AI-driven innovations in e-learning, this study offers valuable insights for educators, researchers, and policymakers seeking to leverage AI’s capabilities in digital education.