This comprehensive review explores the profound impact of artificial intelligence (AI) on warehouse automation, providing an in-depth examination of various AI-driven systems. The integration of AI technologies into warehouse management systems has become pivotal, reshaping the landscape of logistics and supply chain management. AI-driven warehouse automation systems leverage advanced algorithms to optimize various aspects of warehouse operations, from inventory management to order fulfillment. Machine learning algorithms play a key role in demand forecasting, allowing warehouses to predict and adapt to changing customer needs. Computer vision technologies enhance robotic vision, facilitating tasks such as item recognition, pick-and-place operations, and quality control. These advancements significantly contribute to increased accuracy, speed, and cost-effectiveness in warehouse processes. The review covers the evolution of warehouse automation, highlighting the integration of AI as the next phase in this evolution. It discusses the key applications of AI in warehouse automation, including inventory management, order fulfillment, and overall warehouse operations. The review also examines the latest trends in AI-driven warehouse automation, such as edge computing, reinforcement learning, and digital twins, which are reshaping the industry by enabling real-time decision-making, adaptive behavior, and process optimization. However, the review also addresses the challenges associated with AI-enhanced warehouse automation, including ethical considerations, privacy concerns, safety and security risks, and human-robot collaboration issues. Addressing these challenges is crucial for ensuring the successful deployment and operation of AI-driven warehouse automation systems. Finally, the review provides a future outlook on the promising advancements, collaborative research and development efforts, and regulatory frameworks aimed at ensuring responsible and ethical use of AI technologies in logistics. By embracing emerging technologies, fostering collaboration, and establishing clear regulatory guidelines, warehouses can unlock the full potential of AI-driven automation, driving innovation, efficiency, and sustainability in the global supply chain.This comprehensive review explores the profound impact of artificial intelligence (AI) on warehouse automation, providing an in-depth examination of various AI-driven systems. The integration of AI technologies into warehouse management systems has become pivotal, reshaping the landscape of logistics and supply chain management. AI-driven warehouse automation systems leverage advanced algorithms to optimize various aspects of warehouse operations, from inventory management to order fulfillment. Machine learning algorithms play a key role in demand forecasting, allowing warehouses to predict and adapt to changing customer needs. Computer vision technologies enhance robotic vision, facilitating tasks such as item recognition, pick-and-place operations, and quality control. These advancements significantly contribute to increased accuracy, speed, and cost-effectiveness in warehouse processes. The review covers the evolution of warehouse automation, highlighting the integration of AI as the next phase in this evolution. It discusses the key applications of AI in warehouse automation, including inventory management, order fulfillment, and overall warehouse operations. The review also examines the latest trends in AI-driven warehouse automation, such as edge computing, reinforcement learning, and digital twins, which are reshaping the industry by enabling real-time decision-making, adaptive behavior, and process optimization. However, the review also addresses the challenges associated with AI-enhanced warehouse automation, including ethical considerations, privacy concerns, safety and security risks, and human-robot collaboration issues. Addressing these challenges is crucial for ensuring the successful deployment and operation of AI-driven warehouse automation systems. Finally, the review provides a future outlook on the promising advancements, collaborative research and development efforts, and regulatory frameworks aimed at ensuring responsible and ethical use of AI technologies in logistics. By embracing emerging technologies, fostering collaboration, and establishing clear regulatory guidelines, warehouses can unlock the full potential of AI-driven automation, driving innovation, efficiency, and sustainability in the global supply chain.