This literature review explores the rapid rise of Artificial Intelligence (AI) use within K-12 education, focusing on major themes around its integration into teaching and learning environments. While AI-powered digital tools have long supported classroom instruction, the recent adoption of Large Language Models (LLMs) and chatbots such as ChatGPT and Gemini have raised new ethical and practical concerns. On the one hand, teachers benefit from AI in managing their workload and enhancing instructional practices. On the other hand, there are great concerns around student misuse of the same technologies. This literature review and synthesis examines AI’s impact on personalized learning, student differentiation, and teacher application, highlighting the positive contributions that these tools offer. In addition, this review also emphasizes the need for policies that address ethical, privacy, and academic integrity issues. Educators must be prepared to not only implement AI in pedagogically sound ways, but also teach students about the responsible use of these ever evolving digital tools.