The incidence of melanoma, the most aggressive form of skin cancer, continues to rise globally, particularly among fair-skinned populations (type I and II). Early detection is crucial for improving patient outcomes, and recent advancements in artificial intelligence (AI) have shown promise in enhancing the accuracy and efficiency of melanoma diagnosis and management. This review examines the role of AI in skin lesion diagnostics, highlighting two main approaches: machine learning, particularly convolutional neural networks (CNNs), and expert systems. AI techniques have demonstrated high accuracy in classifying dermoscopic images, often matching or surpassing dermatologists' performance. Integrating AI into dermatology has improved tasks, such as lesion classification, segmentation, and risk prediction, facilitating earlier and more accurate interventions. Despite these advancements, challenges remain, including biases in training data, interpretability issues, and integration of AI into clinical workflows. Ensuring diverse data representation and maintaining high standards of image quality are essential for reliable AI performance. Future directions involve the development of more sophisticated models, such as vision-language and multimodal models, and federated learning to address data privacy and generalizability concerns. Continuous validation and ethical integration of AI into clinical practice are vital for realizing its full potential for improving melanoma diagnosis and patient care.