The research investigates the relationship between digitization and the green transition, which is regarded as one of the most important developments in the contemporary economy. Determining the significance of artificial intelligence (AI) in sustainable design and, more significantly, in the growth of the green economy, as well as addressing the ecological effects of these technologies, are the primary goals of the research. The integration of AI with agriculture, the circular economy, and energy network optimization is thoroughly examined in this article. The growing energy and water consumption of data centers over time, as well as their carbon emissions, are discussed and supported by scientific facts within the framework of the "Green Artificial Intelligence Paradox." It examines several technological optimization techniques used to reduce the environmental impact of artificial intelligence models, including knowledge distillation, quantization, and pruning. The study examines the goals set by green growth and the potential for using the nation's renewable energy resources to create an autonomous artificial intelligence infrastructure within the framework of Azerbaijan's National Artificial Intelligence Strategy for 2025–2028.