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This literature review examines the transformative role of machine learning (ML) and deep learning (DL) in enhancing optical spectroscopy for breast cancer diagnosis. By synthesizing advancements from peer-reviewed studies (2015-2025), we evaluate how ML/DL integration improves the detection of malignancy-associated biochemical changes, enabling noninvasive, rapid, and accurate differentiation between healthy and cancerous tissues. This review highlights key spectroscopic modalities, such as Raman, fluorescence, diffusive optical spectroscopy (DOS), and photoacoustic spectroscopy (PAS), and their integration with AI-driven models, such as convolutional neural networks (CNNs), support vector machines (SVMs), and logistic regression. These techniques achieve diagnostic accuracies of up to 94% in subtype classification (e.g., luminal A, HER2-positive) by analyzing spectral biomarkers such as hemoglobin, lipids, and collagen. Challenges such as data variability, model interpretability, and clinical integration barriers are critically assessed. These findings underscore the potential of ML/DL-enhanced spectroscopy to standardize diagnostics, reduce unnecessary biopsies, and personalize treatment monitoring. Future directions emphasize the need for explainable AI (XAI), multimodal data fusion, and large-scale, diverse datasets to bridge translational gaps. By addressing technical, ethical, and regulatory hurdles, this integration promises to advance early detection, improve clinical outcomes, and reshape precision oncology.