Artificial intelligence (AI) is transforming university libraries globally by automating services, improving information retrieval, and supporting sustainable development. However, adoption in developing regions, particularly the Niger Delta of Nigeria, remains underexplored. This conceptual review paper aims to (1) identify key AI applications relevant to university libraries, (2) examine the challenges hindering AI adoption in Niger Delta university libraries, and (3) propose policy recommendations for sustainable AI integration. A narrative review of peer-reviewed literature (2022–2025) was conducted using Google Scholar, IEEE Xplore, Scopus, and Library & Information Science Abstracts (LISA). Search terms included "artificial intelligence," "university libraries," "Nigeria," "Niger Delta," "library automation," and "sustainable development." Inclusion criteria: English-language articles, conceptual or empirical studies on AI in academic libraries. Thirty-eight relevant sources were synthesized thematically. Eight AI applications are relevant to university libraries: intelligent cataloguing, search/recommendation systems, virtual assistants, predictive analytics, automated indexing, digital preservation, plagiarism detection (e.g., Turnitin, iThenticate), and AI-based security. Major challenges in the Niger Delta include inadequate technological infrastructure, digital literacy gaps, financial constraints, resistance to change, ethical concerns, and limited local AI R&D. Strategic investment in infrastructure, training, funding, ethical frameworks, and local research partnerships is essential. Without deliberate policy action, the Niger Delta risks further digital marginalization