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Livestock welfare assessment helps monitor animal health status to maintain productivity, identify injuries and stress, and avoid deterioration. It has also become an important marketing strategy since it increases consumer pressure for a more humane transformation in animal treatment. Common visual welfare practices by professionals and veterinarians may be subjective and cost-prohibitive, requiring trained personnel. Recent advances in remote sensing, computer vision, and artificial intelligence (AI) have helped developing new and emerging technologies for livestock biometrics to extract key physiological parameters associated with animal welfare. This review discusses the livestock farming digital transformation by describing (i) biometric techniques for health and welfare assessment, (ii) livestock identification for traceability and (iii) machine and deep learning application in livestock to address complex problems. This review also includes a critical assessment of these topics and research done so far, proposing future steps for the deployment of AI models in commercial farms. Most studies focused on model development without applications or deployment for the industry. Furthermore, reported biometric methods, accuracy, and machine learning approaches presented some inconsistencies that hinder validation. Therefore, it is required to develop more efficient, non-contact and reliable methods based on AI to assess livestock health, welfare, and productivity.