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This dissertation was written as part of the MSc in e-Business and Digital Marketing at the International Hellenic University. Due to technological development, digital marketing is transforming and taking different shapes all the time. The goal of this literature review is to recognize the uses, the benefits and the risks of artificial intelligence on digital marketing and how the companies can make it happen. The research methodology demonstrates the writing process of the dissertation as well as the methods used to collect the data. The data has been analyzed through qualitative analysis by using desktop analysis. Written and visual sources such as scientific papers, books, commercial texts, and video content were included. The theoretical framework for this dissertation was built around the understanding of the digital marketing and its methods and then of artificial intelligence and its approac hes. Google Ads, content marketing, social media marketing, e-mail marketing, and search engine marketing have also been studied to fully understand the way that digital marketing is executed without the presence of artificial intelligence. Machine learning, problem solving, knowledge representation, deep learning, natural language processing and neural network have been identified as some of the most important artificial intelligence's core characteristics. Moreover, a very important part of this thesis is the uses that artificial intelligence is taking in digital marketing to take it to the next level. Of course, all these are bringing not only benefits but also challenges, which are being presented.