Background: Artificial intelligence (AI) has emerged as a transformative technology with significant potential to reshape educational systems globally. However, the South Asian region—comprising India, Pakistan, Bangladesh, Sri Lanka, and Nepal—faces unique opportunities and challenges in harnessing AI for educational transformation. This literature review synthesizes current research to examine how AI can revolutionize education in South Asia while addressing region-specific constraints.

Objectives: This study analyzes 60+ peer-reviewed articles, research reports, and case studies published between 2013-2025 to identify: (1) the transformative potential of AI technologies in South Asian education; (2) key opportunities including personalized learning, intelligent tutoring systems, and improved learning outcomes; (3) critical challenges including the digital divide, data privacy concerns, teacher readiness, and algorithmic bias; and (4) policy recommendations for equitable AI integration.

Key Findings: AI-driven technologies—particularly personalized adaptive learning (PAL) systems, intelligent tutoring systems (ITS), and conversational AI—demonstrate significant positive impacts on student engagement and academic performance, with adaptive learning improving test scores by 2x in rigorous studies. However, implementation remains hindered by substantial rural-urban digital divides (rural internet access: 24-37% vs. urban 64-67%), infrastructure gaps, and limited teacher training. Leading initiatives in India (DIKSHA, PAL Works), Bangladesh (ChatGPT integration studies), and Pakistan (adaptive learning platforms) provide promising models for the region.

Implications: While AI offers unprecedented opportunities to bridge educational inequities in South Asia—particularly in rural and underserved communities—successful transformation requires: (1) substantial investment in digital infrastructure; (2) comprehensive teacher professional development programs; (3) robust ethical frameworks addressing data privacy and algorithmic bias; (4) culturally-sensitive AI tool development; and (5) coordinated regional policies ensuring equitable access.

Conclusion: AI has transformative potential for South Asian education, but realizing this potential demands balanced integration of technology with human-centered pedagogies, addressing systemic inequalities, and establishing inclusive governance frameworks. Future research should prioritize longitudinal impact studies, focus on underrepresented populations, and explore cost-effective, locally-adapted AI solutions.

Keywords: Artificial Intelligence, Education, South Asia, Personalized Learning, Digital Divide, Adaptive Learning Systems, Educational Technology, Higher Education, Teacher Development, Educational Equity.