Background: Artificial intelligence (AI) has become increasingly embedded in the art sector, leading to transformative developments that influence both artistic production and cultural perception. These changes raise fundamental questions about authorship, originality, and the ethical responsibilities surrounding AI-generated art. Understanding the philosophical and axiological implications of AI’s integration is crucial to ensuring that technological advancements align with artistic integrity, cultural diversity, and ethical considerations. This systematic literature review critically examines the philosophical, cultural, and ethical ramifications of AI in art, with a particular focus on its transformative potential and the evolving nature of artistic creation. The study highlights how AI challenges traditional artistic values while also offering new opportunities for creative engagement and inclusivity. This systematic literature review synthesizes insights from peer-reviewed research, scholarly discussions, and interdisciplinary studies on AI’s role in the art sector. A combination of qualitative and quantitative research approaches is employed to analyze key themes, particularly in relation to AI’s influence on creative agency, artistic authenticity, and ethical concerns in digital art markets. The study underscores how AI is reshaping the perception of authorship and creativity, enhancing artistic accessibility and audience engagement, and fostering new modes of expression. However, it also identifies challenges related to the erosion of human artistic intentionality, ethical dilemmas in AI-generated works, and the potential commodification of art in digital spaces. This comprehensive review highlights both the opportunities and ethical complexities of AI’s role in the art world. By fostering a balanced and responsible integration of AI, the art community can harness its creative potential while preserving artistic values and cultural authenticity. A deeper engagement with philosophical and axiological perspectives is essential to ensuring that AI-driven artistic production remains aligned with principles of originality, ethical responsibility, and aesthetic significance.