In this work, the performance of anion exchange membrane (AEM) electrolysis is evaluated. A parametric study is conducted, focusing on the effects of various operating parameters on the AEM efficiency. The following parameters—potassium hydroxide (KOH electrolyte concentration (0.5–2.0 M), electrolyte flow rate (1–9 mL/min), and operating temperature (30–60 °C)—were varied to understand their relationship to AEM performance. The performance of the electrolysis unit is measured by its hydrogen production and energy efficiency using the AEM electrolysis unit. Based on the findings, the operating parameters greatly influence the performance of AEM electrolysis. The highest hydrogen production was achieved with the operational parameters of 2.0 M electrolyte concentration, 60 °C operating temperature, and 9 mL/min electrolyte flow at 2.38 V applied voltage. Hydrogen production of 61.13 mL/min was achieved with an energy consumption of 48.25 kW·h/kg and an energy efficiency of 69.64%.