Artificial Intelligence (AI) has emerged as a transformative force in numerous sectors, including mental health. This comprehensive review explores the multifaceted impact of AI on mental health, examining its potential to revolutionize diagnosis, treatment, and ongoing care. AI technologies, such as machine learning algorithms and natural language processing, facilitate early detection of mental health disorders through advanced data analysis and predictive modeling. The review highlights AI-driven tools that enhance therapeutic interventions, offering personalized treatment plans and real-time monitoring of patients' mental states. Additionally, the integration of AI in mental health care raises ethical and practical considerations, including privacy concerns, the need for robust regulatory frameworks, and the importance of human oversight. Through an extensive analysis of current research and case studies, this review underscores the promising role of AI in improving mental health outcomes while emphasizing the necessity for a balanced approach that ensures ethical application and addresses potential challenges.