This study explores the two-faced relationship between artificial intelligence (AI) and environmental sustainability, a reality commonly known as the “Green Dilemma.” It explains the manner in which state-of-the-art AI technologies provide innovative solutions to urgent environmental issues such as climate change, resource exploitation, waste management, and biodiversity conservation. It also recognizes the contradictory environmental impact of AI, which is tantamount to enormous energy and resource utilization. Based on recent scholarly literature, the study provides an overview of the application of artificial intelligence in environmental monitoring, renewable-energy systems, circular economy initiatives, and ecosystem management. The description emphasizes the issue of “Green AI,” suggesting effective strategies to reduce the adverse environmental consequences of AI through sustainable technological innovation, policy flexibility, and interdisciplinary collaboration. The final study provides policy recommendations and future-oriented suggestions to guarantee AI as an effective force toward environmental sustainability and reduce its ecological liabilities.
