As Artificial Intelligence (AI) becomes increasingly embedded in education, it presents both promise and complexity, particularly within Catholic Religious Education (RE), where theological integrity and holistic formation are foundational. Tools such as ChatGPT, Microsoft Co Pilot, Google Gemini, and Magic School enhance accessibility and personalisation, yet pose significant theological and pedagogical challenges. These include concerns about the teacher’s role as a faith mentor, the relational nature of learning, and the cultivation of moral agency. This chapter addresses a pressing issue: how faith-based schools might engage emerging technologies without compromising spiritual development or doctrinal fidelity. Although research on AI in education is rapidly expanding, a cohesive understanding of its implications for Catholic RE remains limited. This chapter adopts a pragmatic paradigm and a convergent parallel mixed methods design to analyse 19 secondary sources, including peer-reviewed studies and official Church documents. The Technological Pedagogical Content Knowledge (TPACK) framework and Faith Development Theory (FDT) underpin the analysis, enabling exploration of AI’s alignment with the ethical, pedagogical, and spiritual aims of Catholic education. The findings identify key tensions and opportunities as RE teachers navigate the intersection of technology, pedagogy, and theology, while also highlighting gaps in student voice, cultural inclusivity, teacher formation, and doctrinally grounded pedagogical models. Implications include the urgent need for professional formation integrating AI literacy with theological depth and ethical discernment. This chapter offers timely insight for Catholic educators, curriculum designers, and policymakers. It argues that AI must not replace but support the spiritual and faith formation of students, ensuring that Catholic RE remains grounded in relational, embodied, and theologically faithful practice.