This study investigates the role of educational technology, including artificial intelligence (AI), in improving learning outcomes and addressing the complexities of multi-grade classrooms. A qualitative research method based on the analysis of scientific papers was employed. The findings of the study include an examination of the role of AI in multi-grade classrooms, personalized learning with AI, and the challenges it faces, such as data privacy and security, addressing bias and ensuring fairness, as well as equity and accessibility, co-developing guidelines, and enhancing AI literacy. This study also explores the application of AI in assessment and feedback, AI-enhanced classrooms, challenges and future directions, and ethical considerations associated with AI. The reviewed literature demonstrates the impact of AI-based educational technology in improving teaching and learning in multi-grade classrooms. The findings emphasize the necessity of a thorough examination of ethical implications and potential issues in the use of AI and suggest that future studies should carefully address the ethical considerations and challenges related to the implementation of AI in multigrade classrooms.