The rapid expansion of online education has introduced both transformative opportunities and significant challenges, reshaping traditional learning models. While online education offers increased accessibility, flexibility, and global reach, it also presents several hurdles that affect students, educators, and institutions alike. Key challenges include issues of student engagement and motivation, limited access to technology, lack of social interaction, and difficulties in maintaining academic integrity. The absence of physical presence in online environments often leads to a sense of isolation among students, reducing their ability to connect with peers and instructors, which can adversely affect their learning outcomes. Furthermore, unequal access to reliable internet and devices exacerbates educational disparities, leaving some students at a disadvantage. In response to these challenges, Artificial Intelligence (AI) is emerging as a potential solution to enhance the effectiveness and reach of online education. AI technologies, including personalized learning platforms, intelligent tutoring systems, and automated grading tools, offer innovative ways to address engagement and accessibility issues. By personalizing learning experiences and providing real-time feedback, AI can foster a more tailored and responsive educational environment. AI-powered tools can also help in monitoring academic integrity through proctoring systems and plagiarism detection algorithms, reducing cheating and enhancing the credibility of online assessments. However, the integration of AI into online education brings its own set of concerns. Over-reliance on AI tools may lead to the depersonalization of education, where the human element of teaching and mentorship is diminished. Additionally, the rapid adoption of AI requires significant investments in both technology infrastructure and teacher training, which may not be feasible for all institutions. Ethical considerations, such as data privacy and algorithmic biases, also present challenges that must be carefully navigated. This paper explores the multifaceted challenges of online education and assesses the impact of AI in addressing these issues, while highlighting the potential risks and ethical concerns that accompany AI implementation.