The use of Artificial Intelligence (AI) in VLSI design has greatly improved the design process. AI techniques like machine learning, deep learning, and neural networks can be applied to various tasks such as optimisation, placement, routing, and verification. The implementation of these techniques can enhance the efficiency and accuracy of products while reducing the amount of manual labour required and the design time. AI tools can also identify faults and suggest solutions effectively. The major benefit of AI is its ability to analyse vast amounts of data. Machine Learning algorithms are used for this purpose. Different AI techniques are used for processes like logic design, logic synthesis, physical design and fabrication. This paper examines the challenges of the VLSI design process and the impact of AI on it. We will explore the AI/ML techniques and tools used in VLSI design, as well as the evolution of AI in this field. Additionally, we will discuss the challenges faced in integrating AI into VLSI design.