The rapid expansion of unstructured narrative data within patient safety event (PSE) reporting systems presents both a valuable source of safety intelligence and a major analytical challenge for healthcare organizations. Traditional manual review processes are labor-intensive, subjective, and incapable of scaling to the vast volumes of incident reports generated across modern health systems. Artificial intelligence techniques, particularly natural language processing and machine learning, provide scalable approaches for extracting meaningful insights from these narratives. This narrative review synthesizes advances in AI-enabled PSE analytics across three interconnected domains: automated narrative mining, data-driven taxonomy development, and integration within learning health systems that transform safety data into continuous improvement cycles. Evidence indicates that AI methods can improve event classification, accelerate detection of emerging safety signals, and reduce the analytical burden on safety teams. However, challenges remain regarding model generalisability, interpretability, and governance. AI-driven narrative analytics is emerging as a foundational component of next-generation safety intelligence infrastructures.