Automated refactoring powered by AI improves code maintainability and readability by automatically restructuring and optimizing code without changing its external behavior. AI algorithms analyze code semantics, dependencies, and design patterns to identify opportunities for refactoring, such as code duplication, complex control flows, and anti-patterns. By applying refactoring transformations, such as code extraction, renaming, and method extraction, AI-driven refactoring tools enhance code modularity, clarity, and extensibility. Additionally, automated refactoring assists in enforcing coding standards, reducing technical debt, and facilitating code evolution and maintenance. By integrating automated refactoring into development workflows, teams can streamline code maintenance tasks, improve code quality, and ensure long-term sustainability of software projects.