This study sought to elucidate the ramifications of artificial intelligence (AI) on the advancement of sustainability within Gaza Municipality. A descriptive-analytical methodology was employed, with the study utilizing a questionnaire as the primary instrument for data collection. The population of interest comprised employees of Gaza Municipality, totaling seventy male and female staff members. A random sampling technique was applied, resulting in the retrieval of seventy completed questionnaires, thus achieving a response rate of one hundred percent. The outcomes derived from the statistical analysis indicated that the integration of AI within Gaza Municipality was moderate, recording a relative weight of 65.4%. This finding highlights the municipality’s reliance on AI technologies to enhance its operational performance and efficiency amidst the challenging political and economic context. The mean score for “sustainability” was 3.22, accompanied by a standard deviation of 0.49 and a relative weight of 64.4%, signifying a moderate level of sustainability within Gaza Municipality. The analysis revealed a statistically significant correlation at the alpha significance level of 0.05 or greater between the application of artificial intelligence (AI)—specifically in data analysis and chatbots—and the enhancement of sustainability in Gaza Municipality. This demonstrates a notable influence of AI on sustainability, emphasizing the critical role that technology plays in promoting sustainable development. However, the findings showed no statistically significant differences in the average evaluations of the impact of AI on sustainability across demographic variables such as educational qualifications and job titles. This implies that the influence of AI on performance remained consistent among all demographic groups, showing no significant disparities. Nonetheless, significant differences were observed concerning gender, with a preference for male respondents.