Agile software development emphasizes iterative progress, adaptability, and stakeholder collaboration. It champions flexible planning, continuous improvement, and rapid delivery, aiming to respond swiftly to change and deliver value efficiently. Integrating Generative Artificial Intelligence (AI) into Agile software development processes presents a promising avenue for overcoming project management challenges and enhancing the efficiency and effectiveness of software development endeavors. This paper explores the potential benefits of leveraging Generative AI in Agile methodologies, aiming to streamline development workflows, foster innovation, and mitigate common project management challenges. By harnessing the capabilities of Generative AI for tasks such as code generation, automated testing, and predictive analytics, Agile teams can augment their productivity, accelerate delivery cycles, and improve the quality of software products. Additionally, Generative AI offers opportunities for enhancing collaboration, facilitating decision-making, and addressing uncertainties inherent in Agile project management. Through an in-depth analysis of the integration of Generative AI within Agile frameworks, this paper provides insights into how organizations can harness the transformative potential of AI to advance Agile software development practices and navigate the complexities of modern software projects more effectively.