Abstract
Current power systems are facing noticeable power quality (PQ) performance deterioration, which has been attributed to nonlinear loads, distributed generation, and extensive renewable energy infiltration (REI). These conditions cause voltage sags, harmonic distortion, flicker, and disadvantageous power factors. The traditional PI/PID-based scheme of control, when applied to Flexible AC Transmission Systems (FACTSs), demonstrates low adaptability and low anticipatory functions, which are required to operate a grid in real-time and dynamic conditions. Artificial Intelligence (AI) opens proactive, reactive, or adaptive and self-optimizing control schemes, which reformulate FACTS to thoughtful, data-intensive power-system objects. This literature review systematically studies the convergence of AI and FACTS technology, with an emphasis on how AI can improve voltage stability, harmonic control, flicker control, and reactive power control in the grid formation of various types of grids. A new classification is proposed for the identification of AI methodologies, including deep learning, reinforcement learning, fuzzy logic, and graph neural networks, according to specific FQ goals and FACTS device categories. This study quantitatively compares AI-enhanced and traditional controllers and uses key performance indicators such as response time, total harmonic distortion (THD), precision of voltage regulation, and reactive power compensation effectiveness. In addition, the analysis discusses the main implementation obstacles, such as data shortages, computational time, readability, and regulatory limitations, and suggests mitigation measures for these issues. The conclusion outlines a clear future research direction towards physics-informed neural networks, federated learning, which facilitates decentralized control, digital twins, which facilitate real-time validation, and multi-agent reinforcement learning, which facilitates coordinated operation. Through the current research synthesis, this study provides researchers, engineers, and system planners with actionable information to create a next-generation AI-FACTS framework that can support resilient and high-quality power delivery.