Smart grids are modern electric networks tasked with providing optimal support to sustainable energy systems inclusive of renewable and conventional energy. Nevertheless, they are confronted with problems such as efficiency losses, cost volatility and the problem of load management, especially in peak periods. These issues are discussed in this chapter, looking at the effects of obsolescence and wasted energy on grid outputs and performance. Wind and solar as renewable energy source increase their capacity; they bring variability which affects the grid. To this, solutions like the predictive analytics, automated machine learning and real-time automation are deemed critical in stabilizing the grid. The chapter also shows how artificial intelligence (AI) monitoring and demand forecasting can decrease the losses, optimize the distribution and increase the ability to respond to demand changes. It highlights where AI can support smart grids in demand–response and energy storage systems to provide a more effective response to new requirements for energy supply. The insights are meant to help stakeholders use AI for implementing sustainable smart grid systems.