This review explores the integration of artificial intelligence (AI) into the modernization of the traditional Chinese medicine (TCM) industry. TCM, rooted in centuries of Chinese medical practice, has shown promise in treating chronic, complex, and infectious diseases. However, its development has been hindered by the complexity of its prescriptions and mechanisms. AI technology, with its capabilities in machine learning, deep learning, and data mining, is increasingly being applied to TCM, offering new opportunities for innovation and progress. AI is being used in various aspects of TCM, including drug discovery, data mining, quality standardization, and industry technology. In drug discovery, AI helps identify potential drug targets, screen active compounds, and predict ADMET properties, significantly improving the efficiency and accuracy of the process. In data mining, AI is used to analyze large datasets of TCM prescriptions, uncovering patterns and relationships among herbs and their effects. This aids in the development of effective herbal combinations and the identification of potential adverse reactions. In terms of quality standardization, AI is used to monitor and improve the quality of TCM cultivation, identify quality markers, and ensure the consistency and safety of TCM products. AI also plays a role in the processing of TCM, ensuring that the therapeutic ingredients are retained while harmful components are removed. Additionally, AI is being integrated into TCM education and health management, providing tools for personalized diagnosis, treatment, and health monitoring. Despite these advancements, challenges remain, including the need for more comprehensive pharmacological research, the quality of TCM databases, and the integration of AI with human expertise. The application of AI in TCM is still in its early stages, and further research is needed to fully realize its potential. However, the integration of AI into TCM represents a promising direction for the modernization of the industry, offering new opportunities for innovation and improvement in the field of traditional Chinese medicine.This review explores the integration of artificial intelligence (AI) into the modernization of the traditional Chinese medicine (TCM) industry. TCM, rooted in centuries of Chinese medical practice, has shown promise in treating chronic, complex, and infectious diseases. However, its development has been hindered by the complexity of its prescriptions and mechanisms. AI technology, with its capabilities in machine learning, deep learning, and data mining, is increasingly being applied to TCM, offering new opportunities for innovation and progress. AI is being used in various aspects of TCM, including drug discovery, data mining, quality standardization, and industry technology. In drug discovery, AI helps identify potential drug targets, screen active compounds, and predict ADMET properties, significantly improving the efficiency and accuracy of the process. In data mining, AI is used to analyze large datasets of TCM prescriptions, uncovering patterns and relationships among herbs and their effects. This aids in the development of effective herbal combinations and the identification of potential adverse reactions. In terms of quality standardization, AI is used to monitor and improve the quality of TCM cultivation, identify quality markers, and ensure the consistency and safety of TCM products. AI also plays a role in the processing of TCM, ensuring that the therapeutic ingredients are retained while harmful components are removed. Additionally, AI is being integrated into TCM education and health management, providing tools for personalized diagnosis, treatment, and health monitoring. Despite these advancements, challenges remain, including the need for more comprehensive pharmacological research, the quality of TCM databases, and the integration of AI with human expertise. The application of AI in TCM is still in its early stages, and further research is needed to fully realize its potential. However, the integration of AI into TCM represents a promising direction for the modernization of the industry, offering new opportunities for innovation and improvement in the field of traditional Chinese medicine.