The coupling of Digital Twin (DT) and Artificial Intelligence (AI) is revolutionizing system monitoring, optimization, and reliability. Digital twin of a physical system uses AI-facilitated analytics which provides real-time understanding, predictive diagnostics and autonomous operation. In this chapter, we discuss AI-augmented digital twins from the point of view of their architecture and evolution and provide a brief overview of their applications. Examples of applications in manufacturing, aviation, healthcare and critical infrastructure detail how these systems minimize downtime, extend equipment life and enhance safety. Real-time data synchronization challenges, model accuracy in the neural world, security and resource management aspects are addressed using federated learning, neuromorphic computing, zero trust security frameworks respectively. In this chapter, we introduce a novel cross-industrial view of AI-empowered digital twins operationalization and discuss the potential future of research directions towards scalable, ethical, and resilient systems.