Assessment of student learning outcomes are expected to be valid, reliable, accurate, and efficient. Technology has played a significant role in shaping and enhancing educational assessment practices. As the landscape of artificial intelligence (AI) evolves rapidly, AI technology is currently revolutionizing the test development process, particularly in terms of assessment design, item development, implementation, and psychometric analysis. This presentation will first demonstrate the transformative impact of AI technology on educational assessment by presenting successful use cases of AI in test development such as automated scoring, cheating detection, and process data analysis. Next, the presentation will explore additional possibilities and opportunities that AI can bring to enhance educational assessment practices. This includes the use of generative AI for item generation and item parameter prediction modeling. Finally, the presentation will address the challenges in the applications of AI in educational assessment. It will highlight the potential bias and fairness issues, as well as the ethical considerations for the responsible use of AI in large-scale test development. This presentation will emphasize the importance of thoughtful implementation and continuous evaluation to ensure the validity, reliability, and fairness of AI-powered assessment systems.