The exponential ascension of artificial intelligence (AI) prompts profound inquiries concerning equitable access to its advantages versus environmental externalities. While trailblazing economies relish AI's benefits such as economic expansion and technological eminence, the colossal energy required to train and operate AI systems exacts a hefty toll on the environment, disproportionately burdening marginalized nations. This imbalanced paradigm epitomizes disparities of the digital divide, with impoverished nations bearing externalities while lacking access to innovations. Thisstudy aims to explore the intricate relationship between AI and environmental sus-tainability through a qualitative methodology encompassing a literature review anddocument analysis of industry practices and viewpoints. The findings unveil AI as adouble-edged sword, with empirical analyses exposing its striking carbon emissionsand resource depletion, which if left unchecked, could impede global decarboniza-tion initiatives. However, AI also demonstrates strong potential for optimizing energysystems, predictive modelling, and advancing climate solutions if conscientiouslydeveloped. The study elucidates this conundrum and proposes responsible innova-tion pathways involving renewable energy adoption, enhanced efficiency, optimizedhardware, carbon accounting, transparency, and legislative mindfulness. Integrat-ing climate justice and digital divide perspectives illuminates avenues for steeringAI's trajectory towards environmental stewardship and inclusive accessibility throughproactive collaboration across sectors. Ultimately, collective wisdom will determine whether AI ushers in climate justice or injustice