The Artificial Intelligence (AI) has become a revolutionary technology in power and energy management, providing exceptional prospects for improving efficiency, reliability, and sustainability. This study delves into the incorporation of AI methodologies into smart intelligence-driven systems for power and energy management. It delves into how AI algorithms, encompassing machine learning and optimization approaches, are utilized to enhance energy generation, distribution, and consumption across a range of environments, including smart grids, microgrids, and intelligent buildings. The abstract examines the primary challenges and factors to consider when implementing AI-driven solutions for power and energy management, which encompass issues such as data quality, privacy, security, and scalability. It emphasizes the crucial role of transparency and interpretability in AI algorithms to cultivate trust among stakeholders and secure user acceptance. Additionally, it addresses the importance of upholding ethical standards and regulatory requirements to address societal apprehensions and mitigate potential risks linked to the deployment of AI in energy systems. Moreover, the abstract highlights AI’s contribution to advancing energy efficiency and sustainability through dynamic demand response, incorporating renewable resources, and the optimization of grid operations. It underscores the importance of on-going monitoring and evaluation of AI-driven energy management systems to pinpoint areas for enhancement and mitigate unintended repercussions. In summary, this paper offers perspectives on AI’s potential to transform power and energy management methodologies, leading to more intelligent, robust, and eco-friendly energy systems.