The rapid evolution of artificial intelligence (AI) from expert systems and fuzzy logic to sophisticated technologies such as deep learning and big data analytics has transformed modern management practices. This study explores how AI-driven management practices can effectively bridge innovation, knowledge creation, and sustainable business practices, thereby contributing to long-term organizational growth and the achievement of the Sustainable Development Goals (SDGs). By employing a comprehensive review research technique and analyzing 1,377 articles from the Scopus database, this study uncovers critical themes, sub-themes, variables, and their interlinkages. The findings demonstrate AI’s transformative potential across diverse domains, including human resource management, consumer service management, strategic leadership, operational efficiency, and customer experience enhancement. This paper addresses the role of AI governance frameworks that prioritize ethical considerations such as accountability, transparency, privacy, and cybersecurity, while fostering innovation-oriented knowledge creation. Despite significant advancements, knowledge gaps remain in integrating AI with innovative business models to achieve sustainability objectives. The study concludes by offering research and policy recommendations to promote AI-driven innovations that are ethically sound, operationally efficient, and socially responsible. This work contributes to the discourse on AI’s role in enhancing knowledge systems and innovation processes, providing valuable insights for scholars, practitioners, policymakers, and business leaders.