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Motivated by the importance of education in an individual's and a society's development, researchers have been exploring the use of Artificial Intelligence (AI) in the domain and have come up with myriad potential applications. This paper pays particular attention to this issue by highlighting the future scope and market opportunities for AI in education, the existing tools and applications deployed in several applications of AI in education, research trends, current limitations and pitfalls of AI in education. In particular, the paper reviews the various applications of AI in education including student grading and evaluations, students' retention and drop out prediction, sentiment analysis, intelligent tutoring, classrooms' monitoring and recommendation systems. The paper also provides a detailed bibliometric analysis to highlight the research trends in the domain over six years (2014--2019). For this study, we analyze research publications in various related sub-domains such as learning analytics, educational data mining (EDM), and big data in education. The paper analyzes educational applications from different perspectives. On the one hand, it provides a detailed description of the tools and platforms developed as the outcome of the research work achieved in these applications. On the other side, it identifies the potential challenges, current limitations and hints for further improvement. We also provide important insights into the use and pitfalls of AI in education. We believe such rigorous analysis will provide a baseline for future research in the domain.

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