This chapter examines how artificial intelligence (AI), particularly Learning Analytics and adaptive assessment, can enhance formative assessment in higher education. Drawing on a case study in a Tunisian university, the study shows that AI tools improve feedback quality, student engagement, and autonomy, while supporting teachers in real-time instructional adjustments. Results indicate that a hybrid approachcombining AI-driven insights with human pedagogical judgmentcan foster more personalized and effective learning. The findings highlight the potential of AI to augment, rather than replace, traditional formative practices in an ethical and learner-centered way.