Artificial intelligence has become one of the powerful tools of solving complex environmental problems in the modern academic community in the context of an ever-growing ecological crisis in the global community. The current work highlights the central role of AI in developing green innovation and promoting the sustainability of the environment in various industries. The gap in the research are: inadequate understanding of the integrated and synergistic role of AI in green innovation and sustainable development. This attempts to fill that gap through the provision of a holistic evaluation of AI-based environmental interventions and how relevant they are to the idea of sustainable development. Using both a literature review and a comparative analysis of AI in waste management, energy, agriculture, and climate science, the paper uses the SWOT framework to estimate the overall environmental effects, thus, explaining both advantages and disadvantages related to AI use. The discussion brings out sectors that AI offers the most transformative opportunity especially in energy management, transportation systems, and resource control as it also highlight the need to have responsible governance and ethical data custodianship. The research also presents new findings on AI-waste recycling, whereby recycling systems (automated sorting and computer-vision) facilitate the recycling of waste, reduce landfill wastes, and advance the idea of the circular economy. Besides, it is emphasized that AI-powered digital tools can be used in the process of environmental monitoring, since they analyze satellite imagery and sensor data to monitor deforestation, pollution and the health of endangered species.