The confluence of Artificial Intelligence (AI) and energy frameworks has become a focal point in contemporary research, driven by the imperative to innovate and advance our energy systems. The book chapter delves into the nuanced relationship between AI and these systems, highlighting its opportunities for improved performance, resilience, and environmental conservation. Central to this exploration is the elucidation of AI’s transformative potential in energy dynamics, spanning areas such as machine learning, deep learning, neural architectures, and foresight modelling. The chapter portrays diverse AI-driven applications, emphasising their transformative capabilities in steering energy strategies. Insights into the multifaceted advantages of integrating AI into energy frameworks are presented, stressing augmented stability, amplified efficiency, fiscal savings, and forward-thinking outage resolutions. Based on real-world examples, the research highlights the value of integrating AI into energy strategies. It also identifies new paradigms in the evolving energy landscape that will shape our energy future. This underscores AI’s crucial role in driving energy transformations and calls for collaboration among academia, decision-makers, and industry leaders to create a greener, more efficient energy path. The importance of data analytics in managing power system data, enabling insights into consumption trends, and assisting in making educated decisions is also covered in this chapter. In order to ensure a responsible and secure implementation, the ethical and privacy issues associated with AI deployment in the power sector are also addressed. Furthermore, the chapter elaborates on the prospective trajectory of AI within Power Systems, elucidating its involvement in quantum computing, edge computing, and the incorporation of IoT to facilitate Microgrid Management.