This project uses an AI solution to correctly identify and classify short circuit faults, overvoltage, and open circuit faults in real time. NodeMCU and MCP3008 are used for data acquisition, while AI algorithms are used to ensure accurate fault classification. The main problem solved is the inconsistent fault detection in conventional systems, which can result in late responses and damage to equipment. With the incorporation of AI- based fault analysis, this system improves accuracy, reduces downtime, and provides a continuous power supply. Hardware implementation ensures smooth data collection, transmission, and effective fault localization, making inverter technology more robust and reliable.