The integration of Artificial Intelligence (AI) in various sectors has led to significant advancements, with the animal industry being no exception. This review aims to investigate the benefits, limitations, and future prospects of AI technology in improving animal welfare. First, it examines the role of AI in understanding animal behaviors and emotions, providing deeper insights into their well‐being and sources of stress. Next, the paper explores how AI can revolutionize animal nutrition through innovative algorithms and data analytics. The health aspect emphasizes the ability of AI to identify and manage illnesses through intelligent systems. This review also highlights the application of AI in improving animal living conditions, with a focus on environmental management and automated cleaning and disinfection systems. In conclusion, the review emphasizes AI‐driven techniques for early prediction, close monitoring, and accurate diagnosis of animal diseases, ensuring healthier and more sustainable livestock management. By leveraging its advantages, addressing limitations, and exploring future directions, AI has the potential to significantly enhance animal welfare, sustainable agriculture, and veterinary practices.