The introduction of AI in education has the potential to address educational inequalities and improve outcomes, but it also raises concerns about cultural responsiveness and biases in AI systems. To ensure equitable outcomes, strategies are needed to address these concerns. However, there is a limited understanding of effective approaches for promoting cultural sensitivity and equity in AI-powered educational content, highlighting a significant gap in existing literature. Using literature review methodology, this study aims to explore strategies to enhance cultural sensitivity and mitigate biases in AI-powered educational content, focusing on the intersection of technology and cultural diversity. By addressing concerns related to bias in AI algorithms, our findings highlight the importance of cultural inclusivity in AI-driven educational tools and advocate for proactive measures to embed cultural responsiveness into AI development processes. This review contributes to the discussion on responsibly integrating AI in education, promoting educational environments that value and reflect diverse cultural identities, and promoting a more inclusive educational experience globally.