The American Society for Gastrointestinal Endoscopy (ASGE) has proposed the "resect-and-discard" and "diagnose-and-leave" strategies for diminutive colorectal polyps to reduce the costs of unnecessary polyp resection and pathology evaluation. However, the diagnostic thresholds set by these guidelines are not always met in community practice. To overcome this sub-optimal performance, artificial intelligence (AI) has been applied to the field of endoscopy. The incorporation of deep learning algorithms with AI models resulted in highly accurate systems that match the expert endoscopists' optical biopsy and exceed the ASGE recommended thresholds. Recent studies have demonstrated that the integration of AI in clinical practice results in significant improvement in endoscopists' diagnostic accuracy while reducing the time to make a diagnosis. Yet, several points need to be addressed before AI models can be successfully implemented in clinical practice. In this review, we summarize the recent literature on the application of AI for characterization of colorectal polyps, and review the current limitation and future directions for this field.