The integration of Artificial Intelligence (AI) into gamified digital learning environments represents a significant shift in educational technology. AI-enabled gamification enhances traditional gamification by introducing dynamic, adaptive elements that cater to individual learning needs, thereby addressing long-standing challenges in student engagement and motivation. This paper explores the theoretical under pinnings of gamification, emphasising the importance of intrinsic motivation as described by the Self-Determination Theory, and critiques traditional methods for their reliance on extrinsic rewards. AI’s characteristics of autonomy and adaptivity allow for real-time data analytics and learner behavior prediction, creating person alised educational experiences that evolve with the learner. This approach fosters deeper engagement and sustained motivation, potentially leading to improved academic outcomes. However, the adoption of AI in education raises ethical concerns regarding data privacy and algorithmic bias, necessitating careful consideration and transparent practices. Ultimately, AI-enabled gamification offers a more nuanced and effective methodology for teaching, learning, and assessment, marking a paradigm shift from static, one-size-fits-all approaches to dynamic, learner-centered education.