Educational assessment in the Global South is often defined by a paradox: national curricula aspire to cultivate 21st-century skills while legacy high-stakes examination systems incentivize rote memorization. This chapter argues that Artificial Intelligence may provide a pathway to resolve this tension by creating more opportunities for assessment to shift from a primarily summative, accountability-focused function to a formative, learning-oriented one. It examines both the transformative potential of AI to enable continuous, personalized feedback and assess complex skills and the current reality of its application. The analysis reveals that while AI could fundamentally reshape assessment, its current use often focuses on improving the efficiency of existing summative assessment models, such as through automated grading and proctoring. Transformative applications like adaptive testing and portfolio analysis are emerging but remain limited.