This chapter explores the evolving role of Artificial Intelligence (AI) in driving sustainable development. It begins by defining AI as per the 2024 EU AI Act and assessing current global advancements. The discussion focuses on AI's contributions to the Sustainable Development Goals (SDGs), with examples in healthcare, education, climate action, and urban planning. It also raises critical concerns, including algorithmic bias, privacy risks, environmental impact, and exclusion of marginalized communities. Key regulatory frameworks from the EU, USA, China, and India are examined to highlight governance gaps and opportunities. The chapter asks whether AI can be a reliable force for equity and sustainability and proposes solutions like ethical-by-design systems, global cooperation, and participatory policymaking. It concludes that AI, if responsibly governed, can significantly accelerate sustainable outcomes while upholding human dignity and environmental balance. © 2026, IGI Global Scientific Publishing. All rights reserved.