Abstract: The integration of artificial intelligence (AI) into engineering education has emerged as a transformative force, offering innovative tools to enhance teaching, learning, and administrative processes. This study presents a systematic review of the current landscape, focusing on the AI technologies application, the regulatory frameworks, and the challenges encountered in engineering education. The findings reveal how AI can improve student learning outcomes, personalize educational experiences, and automate complex processes. The review also addresses critical issues, such as ethical considerations and the imperative for regulatory compliance. Furthermore, it identifies key barriers to adoption, such as technological limitations and the preparedness of educators and students to embrace AI-powered solutions. This study provides a comprehensive understanding of the potential and limitations of AI in engineering education, offering actionable insights for educators, policymakers, and stakeholders aiming to foster effective and ethical AI integration in academic settings.