Today organizations face rising pressure to attract and retain skilled employees while promoting ethical and future-ready leadership. Presently, organizations are leveraging Artificial Intelligence (AI) to improve decision-making process, optimize human capital strategy and drive sustainable strategic outcomes. This chapter introduces the interplay of sustainable leadership, talent retention, and AI-augmented decision-making within the context of Human Capital Management (HCM). The chapter proposes a conceptual model that integrates sustainable leadership principles, technological capabilities, and human resource outcomes. Further, the chapter emphasizes how AI-enhanced decision-making improves the efficiency in HR strategies, indicating the mediating role of sustainable leadership and talent retention. The integration of AI into all the core function of HCM, from talent acquisition to talent management, amplifies the impact of sustainable leadership by facilitating data-driven decision making. This research accentuate the value of combining ethical leadership with AI-driven insights to build a resilient, sustainable workforce.