This paper offers a review of the artificial intelligence (AI) algorithms and applications presently being used for smart machine tools. These AI methods can be classified as learning algorithms (deep, meta-, unsupervised, supervised, and reinforcement learning) for diagnosis and detection of faults in mechanical components and AI technique applications in smart machine tools including intelligent manufacturing, cyber-physical systems, mechanical components prognosis, and smart sensors. A diagram of the architecture of AI schemes used for smart machine tools has been included. The respective strengths and weaknesses of the methods, as well as the challenges and future trends in AI schemes, are discussed. In the future, we will propose several AI approaches to tackle mechanical components as well as addressing different AI algorithms to deal with smart machine tools and the acquisition of accurate results.