This review article explores the transformative impact of artificial intelligence (AI) on warehouse automation, highlighting its role in enhancing efficiency, accuracy, and adaptability in logistics and supply chain management. AI-driven warehouse automation systems leverage advanced algorithms, machine learning, computer vision, and robotics to optimize inventory management, order fulfillment, and material handling. These systems enable real-time decision-making, predictive analytics, and autonomous operations, significantly improving warehouse performance. Key AI-driven systems include autonomous mobile robots (AMRs), robotic arms, and automated guided vehicles (AGVs). AMRs navigate warehouse environments autonomously, optimizing pick routes and adapting to layout changes. Robotic arms enhance precision in material handling, while AGVs ensure efficient material transport. These technologies contribute to increased productivity, reduced labor costs, and improved operational flexibility. Recent trends in AI-driven warehouse automation include the integration of edge computing, which enables localized data processing and reduces latency. Reinforcement learning allows robotic systems to adapt to dynamic environments, while digital twins provide virtual simulations for optimizing warehouse layouts and processes. These advancements enhance the responsiveness and efficiency of warehouse operations. Despite the benefits, challenges such as ethical considerations, data privacy, safety, and human-robot collaboration must be addressed. Ensuring responsible AI deployment requires robust cybersecurity measures, ethical guidelines, and workforce training. Regulatory frameworks are also essential to govern the use of AI in logistics and ensure compliance with safety and data protection standards. The future of AI-driven warehouse automation is promising, with ongoing research and development driving innovation in robotics, predictive analytics, and digital twin technologies. Collaborative efforts among industry stakeholders, academia, and policymakers will be crucial in advancing AI applications in logistics and ensuring sustainable, efficient, and ethical warehouse operations. As AI continues to evolve, it will play a pivotal role in shaping the future of smart, agile, and efficient warehouses.This review article explores the transformative impact of artificial intelligence (AI) on warehouse automation, highlighting its role in enhancing efficiency, accuracy, and adaptability in logistics and supply chain management. AI-driven warehouse automation systems leverage advanced algorithms, machine learning, computer vision, and robotics to optimize inventory management, order fulfillment, and material handling. These systems enable real-time decision-making, predictive analytics, and autonomous operations, significantly improving warehouse performance. Key AI-driven systems include autonomous mobile robots (AMRs), robotic arms, and automated guided vehicles (AGVs). AMRs navigate warehouse environments autonomously, optimizing pick routes and adapting to layout changes. Robotic arms enhance precision in material handling, while AGVs ensure efficient material transport. These technologies contribute to increased productivity, reduced labor costs, and improved operational flexibility. Recent trends in AI-driven warehouse automation include the integration of edge computing, which enables localized data processing and reduces latency. Reinforcement learning allows robotic systems to adapt to dynamic environments, while digital twins provide virtual simulations for optimizing warehouse layouts and processes. These advancements enhance the responsiveness and efficiency of warehouse operations. Despite the benefits, challenges such as ethical considerations, data privacy, safety, and human-robot collaboration must be addressed. Ensuring responsible AI deployment requires robust cybersecurity measures, ethical guidelines, and workforce training. Regulatory frameworks are also essential to govern the use of AI in logistics and ensure compliance with safety and data protection standards. The future of AI-driven warehouse automation is promising, with ongoing research and development driving innovation in robotics, predictive analytics, and digital twin technologies. Collaborative efforts among industry stakeholders, academia, and policymakers will be crucial in advancing AI applications in logistics and ensuring sustainable, efficient, and ethical warehouse operations. As AI continues to evolve, it will play a pivotal role in shaping the future of smart, agile, and efficient warehouses.