Artificial intelligence (AI) and machine learning (ML) are revolutionizing the visual effects (VFX) industry by automating complex workflows, enhancing creative capabilities, and enabling unprecedented levels of realism in media production. These technologies are being increasingly integrated into various stages of VFX pipelines, significantly transforming traditional practices in film, gaming, animation, and virtual reality. From automating labor-intensive tasks such as rotoscoping, motion tracking, and background removal, to optimizing rendering processes through intelligent sampling and denoising techniques, AI and ML are streamlining production timelines and reducing costs. Beyond automation, AI-driven tools are empowering artists to achieve more creative freedom by generating high-fidelity digital humans, realistic environments, and dynamic simulations that adapt in real-time. Deep learning algorithms, such as generative adversarial networks (GANs), are now capable of producing photorealistic textures, facial expressions, and fluid effects that would otherwise require extensive manual effort. These advances are not only enhancing visual storytelling but also opening new possibilities for immersive user experiences in virtual and augmented reality. This paper delves into the core technologies underpinning AI and ML applications in VFX, illustrating their roles in pre-production, production, and post-production stages. Furthermore, it examines real-world case studies that highlight successful integrations of AI in mainstream media projects. While the benefits are profound, the paper also addresses emerging ethical concerns, including deepfakes, authenticity, job displacement, and intellectual property challenges. The discussion concludes with insights into the future trajectory of AI in VFX, emphasizing the need for balanced innovation that aligns technical progress with ethical responsibility.