The integration of artificial intelligence (AI) technologies into Learning Management Systems (LMS) represents a transformative advancement in contemporary education, enhancing personalization, efficiency, and interactivity. This study presents a systematic methodology for integrating AI technologies into the Moodle LMS. Moodle 4.5 was selected as the LMS owing to its modular architecture, flexibility, scalability, and integrated AI tools. This paper delineates the technical and pedagogical steps necessary for a successful integration process, including the installation of plug-ins, integration of APIs, customization of the system, and configuration of the AI menu. Moodle 4.5 simplifies the deployment and utilization of AI functionalities, offering an intuitive framework for creating dynamic and adaptive learning environments. AI integration improves student engagement, enables personalized learning pathways, and facilitates data-driven instructional decisions. However, challenges such as data privacy concerns, algorithmic biases, and infrastructural demands require ethical frameworks, interdisciplinary collaboration, and educator training to ensure responsible implementation. This study concludes that AI integration into platforms like Moodle can redefine educational paradigms, fostering inclusive and future-ready learning environments. Recommendations include investments in robust infrastructure and the adoption of ethical strategies to maximize AI's transformative impact while upholding pedagogical integrity and equity.