Artificial Intelligence (AI) is increasingly reshaping contemporary managerial practices by enabling data-driven decision-making, intelligent automation, and enhanced organizational sustainability. As organizations integrate AI-based tools such as predictive analytics, machine learning, and real-time monitoring systems, managerial functions are transitioning from experience-based judgment to evidence-supported strategic coordination. This empirical study investigates the influence of AI-driven management practices on organizational performance and sustainability outcomes within an emerging-economy context. Primary data were collected from 100 employees working in information-technology and service organizations using a structured Likert-scale questionnaire measuring AI Adoption, Organizational Performance, and Sustainability Outcomes. Statistical analyses including descriptive statistics, reliability testing, correlation, regression, and ANOVA were conducted to evaluate the proposed relationships. The findings demonstrate that AI adoption exhibits a strong and statistically significant positive relationship with both organizational performance and sustainability outcomes. Regression results further indicate that AI-enabled managerial practices explain a substantial proportion of variance in performance and sustainability indicators, highlighting AI’s strategic contribution to efficiency, innovation capability, and ESG-aligned operations. Despite these benefits, respondents also emphasized challenges related to data security, ethical governance, skill gaps, and algorithmic transparency, suggesting the need for responsible AI implementation frameworks. Overall, the study contributes empirical evidence to the growing discourse on digital transformation and sustainable management, offering practical insights for managers and policymakers seeking to leverage AI for long-term organizational competitiveness and socially responsible growth.