At present, Indian retail sector is experiencing rapid growth, which is also raising the concerns about sustainability. Hence, it is enhancing the need of utilizing transformative tool to increase sustainable practices in the industry. In this context, Artificial Intelligence (AI) is emerging as a tool that has the potential to bring this transition. This chapter is focused towards exploring the use of AI-enhanced technologies in leading sustainability within the retail sector of India. In regards to this, it gives major emphasis on supply chain optimization, effective inventory management, energy efficiency, waste reduction, and sustainable product design. There will be special concern given towards investigating the current AI-enhanced practices undertaken by Indian retail sector to optimize sustainable practices. Additionally, it will highlight the challenges as well as loopholes faced by Indian retail brands in the adherence of AI technologies with the help of real-life examples of Indian retail brands. It will allow enhancing the relevancy of the findings and to analyze how these brands integrate AI in their operations to streamline logistics, reduce carbon footprints, and manage resources in efficient manner. On the other hand, it will also showcase the challenges faced by the contemporary retail brands in the adoption of AI, such as—high initial investment, data privacy concerns, skill gaps, etc. Moreover, this chapter will help to provide recommendations that can be used by Indian retail brands to deal with such challenges appropriately and can improve their sustainable practices.