Abstract
<jats:p>A smart grid represents a huge leap forward from conventional grids and uses advanced technologies to make the power grid more efficient, reliable, and sustainable. One of its main features is two-way communications, which helps in selfhealing, active consumer participation in managing energy, and resilience against both physical and cyber threats. A very important dimension of this transition is the integration of different sources of energy, including renewable energy, which plays a crucial role in reducing dependence on fossil fuels and maintaining an environmentalfriendly energy path. The chapter examines key areas where AI can make significant contributions, including demand response management, energy forecasting, asset management, and fault detection. Predictions in the energy domain benefit from AI's processing power for huge volumes of data and continue to improve because of better accuracy, which will lead to grid stability. AI-powered fault detection systems can quickly identify and resolve issues, minimizing downtime and improving overall grid reliability. However, integrating AI into smart grids introduces new challenges, especially concerning cybersecurity and the increasing reliance on digital infrastructure. It offers the ability to optimize grid efficiency, integrate renewable energy more smoothly, and enhance resilience. This chapter contributes to the understanding of the potential benefits and challenges related to AI integration in smart grid systems, highlighting key approaches for future research and development in this rapidly evolving field.</jats:p>