The advent of Artificial Intelligence (AI) has brought transformational change in industries, including those in energy systems. When it comes to smart grids, AI applications are here to revolutionize how one generates, distributes, or consumes energy. This chapter goes into great detail with AI-driven methodologies specifically setup for smart grid optimization, forecasting, and automation. It deals with predictive maintenance, load forecasting, and demand-side management while applying reinforcement learning for an optimal decision in real time. It focuses on AI-based enhancement of the smart grid’s resilience and reliability and the ability to detect faults, anomalies, and a way to balance the smart grid in dynamic environments. It further discusses the challenges towards data privacy, cyber security, and scalability-related challenges to AI solutions. The capability of AI to empower the sustainable, efficient, and resilient power grid is then elaborated in this book as a step towards developing the sustainable future for infrastructure for energy.