This research examines the integration of AI-driven psychological and contextual marketing to nudge sustainable consumer behavior, highlighting its potential to reshape consumption patterns. By synthesizing existing literature, it identifies critical challenges such as ethical considerations, privacy concerns, and the contextual variability of interventions. The study underscores the importance of robust theoretical frameworks, longitudinal studies, and cross-cultural analyses to enhance the effectiveness of AI-driven nudges across diverse economic and cultural contexts. Key findings reveal that while AI presents significant opportunities for fostering sustainability, its success depends on addressing theoretical gaps, ensuring inclusivity, and adopting adaptable approaches for both developed and developing regions. This research contributes to the theoretical understanding of AI's role in sustainable consumption by encouraging further empirical studies and identifying key influencing factors. Furthermore, the study offers insights into designing targeted, ethical, and culturally adaptable interventions to influence consumer behavior. These contributions can assist policymakers and organizations in aligning AI capabilities with sustainable development goals, addressing societal and environmental imperatives. This work bridges gaps in the literature and provides a foundation for future research and practical applications, advancing the discourse on sustainability and AI in consumer behavior.