Artificial intelligence (AI) is revolutionizing several businesses across the world, and its implementation in drilling engineering has enhanced the performance of oil and gas companies. This paper reviews and analyzes the successful application of AI techniques to predict wellbore instabilities during drilling operations. First, a summary of the implementation of AI for the prediction of loss circulation, pipe stuck, and mud window is highlighted. Then, the recent innovations and challenges of the AI adoption in major drilling companies is presented. Finally, recommendations are provided to improve the integration of AI in the drilling industry. This analysis gives deep insight into the main publications and recent advances of the application of AI in drilling engineering and is expected to contribute to the further development of the drilling industry.