Artificial Intelligence (AI) has rapidly evolved into a cornerstone of technological innovation in the 21st century, transforming sectors such as healthcare, education, finance, transportation, and manufacturing. Simultaneously, Python has emerged as the de facto programming language for AI development, owing to its ease of learning, syntax simplicity, extensive support libraries, and active global community. This paper explores the synergy between AI and Python programming by tracing historical developments, reviewing a variety of practical applications, and analyzing key challenges faced by developers and researchers. The discussion extends to state-of-the-art areas such as explainable AI (XAI), edge AI, federated learning, and the integration of AI with quantum computing. Ethical considerations, computational limitations, and the demand for model transparency are also examined. This comprehensive analysis aims to guide future research and application development in AI using Python, ensuring scalable, inclusive, and responsible innovation.