Sanskrit, one of the oldest language in the world, is receiving considerable attention in the field of Artificial Intelligence and Natural Language Processing. This paper reviews existing literature on the significance of Sanskrit in AI and NLP. It focuses on the features of Sanskrit language such as grammar precision, rule-based structure and system of meanings. Particularly analyzing the studies of the Panini’s Ashtadhyayai and its grammatical framework, this study shows how Sankrit’s precise rules and semantic depth can provide a strong base for machine language and computational processing.

The existing research suggests that Sanskrit's rule bound grammatical structure aligns well with computational processing which allows for precise construction in machine language. Further studies highlight the contribution of Ai driven text analysis of scriptures and digitization of Sanskrit language in preserving the rich cultural heritage. Recent interdisciplinary research points towards the potential of Sanskrit language’s integration into the field of AI in enhancing the rule based systems and symbolic AI models. This integration may enhance the contextual understanding, reasoning and linguistic analysis while preserving the cultural heritage.