In the era of educational innovation, artificial intelligence has emerged as a transformative force, redefining the dynamics of assessment in universities. Artificial Intelligence (AI) is not merely a tool used for automating tasks, but an advanced system that can analyze vast amounts of data, predict outcomes, and personalize experiences. The application of AI in grading and providing tailored feedback holds the promise of revolutionizing traditional educational practices, enhancing the learning experience for diverse student populations. The concept of AI-powered grading has evolved significantly, transitioning from rudimentary algorithms that merely evaluate student outputs to sophisticated systems capable of understanding context, nuance, and individual learning trajectories.