The rapid evolution of cyber threats necessitates advanced defensive measures. Artificial Intelligence (AI) has emerged as a cornerstone of modern threat detection, promising unprecedented speed and accuracy. This paper examines the transformative potential of AI-driven systems, critically analyzes their inherent limitations and vulnerabilities (including adversarial attacks, bias, and opacity), and explores the complex policy landscape required for their safe, ethical, and effective deployment. We argue that while AI offers significant advantages, realizing its full potential demands addressing technical pitfalls, establishing robust governance frameworks, and fostering human-AI collaboration.