As the world grapples with pressing sustainability challenges, the emergence of Artificial Intelligence (AI) presents a transformative opportunity to drive sustainable development across multiple sectors. This article explores the integral role of AI in optimizing resource usage, enhancing predictive capabilities for environmental monitoring, and fostering economic growth while ensuring minimal environmental impact. Through a comprehensive literature review, the potential of AI applications in energy management, precision agriculture, and urban sustainability is illuminated. Additionally, the article addresses significant challenges, including ethical considerations, data privacy, and the risk of exacerbating socioeconomic disparities. By advocating for collaborative approaches among governments, businesses, and civil society, this work emphasizes the necessity of implementing AI responsibly to promote inclusive and effective sustainable development practices. Ultimately, this thesis posits that, when harnessed effectively, AI can serve as a crucial tool in the pursuit of a more sustainable, equitable future.