There are lots of advantages of digital marketing which enables marketers to reach customers at low cost over traditional marketing. Digital marketing is playing vital role in growing business. In marketing AI is also playing vital role through more intelligent search’s engine, chatbots, personalization, programmatic advertising, creating and generating content, web designing, email marketing campaigns, dynamic pricing, predicting customer behavior etc. Artificial intelligence enables businesses to gain a clear and precise understanding of their customers' needs, enhancing their sales and revenues. This paper focuses on the application areas of artificial intelligence in digital marketing environment and the impact of artificial intelligence in digital marketing world. Artificial intelligence enables digital marketers to gain a clear and precise understanding of their customers' needs, enhancing their sales and revenues