AI is revolutionizing rail transportation, bringing automation and intelligence to trains and railway systems. From advanced driver assistance to full automation, AI enhances safety by minimizing human error through sensor technology and algorithms, making rail travel more secure. The challenges in railway operations are increasing. Artificial Intelligence has also led to a number of notable improvements in efficiency and safety across rail networks, as well as significant cost reductions. Growing passenger numbers, complex route networks, tightly scheduled timetables , the coexistence of passenger and freight traffic side by side. At the same time, there is increasing demand for safety, capacity, comfort, and sustainability. Artificial intelligence encompassing machine learning and inferencing currently offers the greatest leverage to meet these challenges. However, this transformation also raises ethical, legal, and cybersecurity questions, along with societal changes and job shifts within the rail industry. Despite such challenges and acceptance hurdles, the future looks promising with AI-driven rail mobility.