The recent development in Artificial Intelligence, specifically with the advent of large language models like GPT-4, is transforming educational paradigms. This literature review investigates the implications of AI and large language models in education, outlining a vision for personalized, on-demand, and interactive learning. This research examines how these technologies can function as virtual tutors, encourage real-time examination, support lifelong education, and function as teachers' resources by automating administrative tasks. The review also addresses the ethical concerns of utilizing AI in educational frameworks and advocating for a complement rather than a replacement of teachers. Additionally, it investigates their ability to promote real-time assessment, enabling students to receive immediate feedback and adapt their learning strategies accordingly. Moreover, this review highlights the potential of AI and large language models to support improving knowledge, competencies, and new skills development. By providing learners access to vast knowledge repositories, these technologies empower individuals to pursue continuous learning beyond traditional classroom settings. By enabling a general understanding of the arising paradigm, the aim is to design a framework for future education systems where AI plays a constructive role.