Artificial intelligence (AI) is increasingly recognized as a transformative force capable of accelerating progress toward the Sustainable Development Goals (SDGs) outlined in the United Nations 2030 Agenda. This article examines how AI integration within higher education can contribute to achieving sustainability outcomes, with a particular focus on a case study from the University of Ljubljana in Slovenia. Drawing on an exploratory case study design and a comprehensive content analysis framework, the study analyzes the integration of AI across 26 university courses to identify both enabling and inhibiting factors that shape the interplay between digital innovation and sustainable development. The results show that AI applications in higher education have the potential to support advancement toward 11 of the 17 SDGs and 28 specific targets, especially by enhancing innovation, improving digital literacy, and fostering more equitable access to educational resources.

At the same time, the integration of AI presents challenges that may impede sustainability progress, particularly regarding data protection, privacy concerns, and differences in access to technology among diverse student groups. Findings highlight that without careful consideration of ethical and inclusive practices, the benefits of AI could be unevenly distributed, further exacerbating existing inequalities. Despite these risks, the study reveals significant opportunities for higher education institutions to leverage AI for sustainable outcomes when supported by appropriate pedagogical strategies and institutional policies.

By articulating both the promises and pitfalls of AI in the educational context, the article provides valuable insights for educators, policymakers, and researchers interested in harnessing digital innovation for sustainable development while addressing associated social and ethical complexities. Future research directions are outlined to broaden the understanding of AI’s role in global sustainability efforts.