In recent years, digital transformation has become a crucial driver in reshaping social and economic sustainability worldwide. The advent of artificial intelligence (AI) has accelerated this shift by introducing innovative ways of solving complex societal and economic challenges. This chapter explores the synergies between digital technologies, particularly AI, and their impact on achieving Sustainable Development Goals (SDGs) across various sectors. By examining the transformative power of AI in industries like healthcare, agriculture, education, and energy, this chapter underlines how digital tools contribute to inclusive growth, environmental sustainability, and equitable economic opportunities. The chapter begins by providing a foundational understanding of AI’s role in socio-economic frameworks, highlighting its capacity to optimize resource use, enhance decision-making, and drive data-driven policies. Key social sectors are analyzed to demonstrate AI’s ability to improve societal outcomes, such as reducing inequality, promoting education, and increasing access to healthcare services. Furthermore, the economic dimension of sustainability is examined through the lens of AI-enabled automation, which is transforming labor markets and industries by fostering more efficient production processes, reducing operational costs, and minimizing waste. In addition, the chapter explores how AI enhances environmental sustainability by optimizing energy use, facilitating the transition to renewable energy, and promoting circular economies. It delves into AI-driven solutions for climate change, resource management, and biodiversity conservation as digital interventions. At the same time, the ethical and governance issues related to the implementation of AI in social and economic contexts are critically discussed, considering the risks of job displacement, data privacy concerns, and potential biases in AI systems. Finally, this chapter presents future research opportunities and policy recommendations aimed at fostering AI’s positive impact on social and economic sustainability. This includes discussions on responsible AI development, strategies for ensuring that AI benefits all segments of society, and the need for international cooperation to address the global nature of sustainability challenges. Through a combination of theoretical insights and practical case studies, the chapter underscores that digital transformation, powered by AI, holds the key to creating a more sustainable, equitable, and resilient world.