With rise in cloud usage, MNCs these days encounter significant challenges adhering to strict and evolving regulatory compliance requirements. Conventional compliance frameworks, characterized by manual processes, fixed rules, and periodic audits, are inadequate for addressing the transient characteristics of contemporary cloud environments. This chapter examines the transformative impact of AI on compliance management within cloud environments. It illustrates the enhancement of scalability, accuracy, and proactivity through practical algorithms, case studies, and best practices in AI, while also addressing the significant challenges of transparency, privacy, and ethical alignment. This chapter analyzes future trends including explainable AI, edge compliance, and quantum readiness, offering practical insights for cloud professionals, compliance leaders, and technology strategists.