The potential for improving sustainable business operations in the energy industry through the combination of artificial intelligence (AI) and Internet of Things (IoT) technology is considerable. This research investigates the potential benefits, obstacles, and policy ramifications of utilizing AI and IoT technology for sustainable commercial activities within the energy industry. A thorough analysis of current literature, including government publications, industry reports, and peer-reviewed journal papers, is part of the methodology used. Important discoveries demonstrate how AI and IoT technology can revolutionize resource efficiency, improve grid stability, encourage the integration of renewable energy sources, and lessen environmental effects. To guarantee successful acceptance and deployment, however, obstacles must be addressed, including worries about data privacy and security, unpredictability in regulations, interoperability problems, and the need for workforce development, Clear regulatory frameworks, workforce development programs, interoperability standards, and cybersecurity measures are among the policy implications that must be addressed to enable the appropriate and successful integration of AI and IoT technologies in the energy sector. In summary, this research highlights the significance of deliberate investments, cooperation, and legislative measures when utilizing AI and IoT technology to propel sustainable business practices within the energy industry.