Artificial Intelligence has major impact on the evolving technology of the world and now it is an option to transform the software engineering system into intelligence smart software. Software development through Artificial Intelligence is the hallmark of this era and it is going to shape the future of technology with more business opportunities and now more than 80% companies are working on Artificial Intelligence and those who already have it are redefining their strategies. There is more investment in this particular field because the cumulative role of both software engineering and artificial Intelligence would bring major and unexpected changes in the world within no time. Not only software development setup would be improved but it will also have positive effects on automated testing software and agile test automation. This paper also focuses on the approaches of software engineering process along with the application of Artificial Intelligence in improving the software quality systems and reduction of time in the market. This paper also drives some tasks and activities specified in standardizing the software engineering process. The paper will also discuss the AI techniques needed by software engineer to highlight the open research issues specifically for the research community.