Artificial intelligence (AI) and machine learning (ML) are revolutionizing composite manufacturing by enabling data-driven forecasts, process optimization, defect identification, and intelligent process control. The objective of this review is to discuss the recent innovations and emerging trends in the application of AI/ML in the major composite manufacturing technologies, such as automated fiber placement (AFP), automated tape laying (ATL), resin transfer molding (RTM), resin infusion, compression molding, pultrusion, additive manufacturing, and non-destructive evaluation (NDE). This paper discusses the capabilities and limitations of advanced technologies, including deep learning, physics-informed machine learning, transfer learning, multimodal learning, explainable AI, digital twin, surrogate modeling, and closed-loop control, and their future potential. A comprehensive literature survey explored the latest developments in composite manufacturing using AI/ML. The review categorized the research by manufacturing process, AI/ML approach, sensor and inspection modality, prediction and/or optimization objective, and reported performance. The review thoroughly addressed applications in process monitoring, defect prediction, quality evaluation, surrogate modeling, intelligent inspection, and adaptive process control. The review also surveyed data scarcity, domain shift, model interpretability, multimodal sensing, and the incorporation of physical process knowledge. The literature study reveals a substantial potential for AI/ML in prediction, inspection, process optimization, and manufacturing decision-making. Reported applications include RTM filling-pattern prediction, automated thermographic and ultrasonic flaw identification, process-properties prediction, and composite additive-manufacturing inspection. For example, a PixelRNN surrogate model predicted RTM filling patterns with up to 97.35% accuracy, at roughly half the computational cost of exhaustive simulation. In ultrasonic composite inspection, ML-based thermographic impact-damage detection reached 98.8% classification accuracy, while DenseNet121 and VGG19 reached 98.6%. Integrating deep learning and infrared thermography in fiber-reinforced composite additive manufacturing achieved a mean average precision of 99.3%. Under the reported experimental conditions, the defect-area error was within 6%. These results are promising, but differences in datasets, sensors, fault types, validation procedures, and performance measures make direct comparisons difficult. Major challenges for industrial adoption include small, proprietary datasets; non-standard data formats; domain shift between materials and machines; sensor variability; limited model interpretability; the simulation-to-reality gap; cybersecurity and intellectual property constraints; and a lack of closed-loop validation. The assessment noted that purely data-driven methods may not transfer easily when processing conditions and/or the material system change. Thus, a promising approach to build more reliable and transferable Intelligent manufacturing systems is to use hybrid methods that combine artificial intelligence/machine learning with physical knowledge, multimodal sensing, digital twins, uncertainty quantification, and human expertise. In composite manufacturing, AI/ML is becoming an important enabling technology for next-generation approaches such as automated inspection, fault categorization, surrogate modeling, production-process prediction, and parameter optimization. Future work should move beyond laboratory-level prediction accuracy toward validated manufacturing applications with standard datasets, third-party validation, machine validation, physics-informed and multimodal learning, digital-twin integration, and measurable manufacturing-level performance indicators. Coupling AI/ML with physical process models, intelligent sensing, and human-in-the-loop decision-making can enable even more autonomous, high-quality, low-waste, adaptable, and intelligent composite manufacturing systems.