The new paradigm in clean, sustainable, dependable, and efficient energy generation, and delivery, hasled to the transformation and innovation of traditional grid to smart grid. The transformation andinnovation use advanced technologies such as AI and IoT to monitor and control power generation,transmission, and distribution processes in a smart grid (SG). AI applications in SG have emerged as aninnovation that guarantees effective, flexible, reliable, sustainable, decentralized, secure, and cost-effective distribution and management of energy in SG. This study is a research proposal for AIApplications in SG for Reliability, Security, and Stability. It begins by introducing the SG and its relatedchallenges, followed by AI applications in SG and its implementation challenges. The study identifiesresearch problems in AI applications in SG to be AI interpretability and formulates three researchquestions that can help address the problem identified. Also, this paper presents the results of theliterature review conducted to provide a sufficient grounding for this study and discusses the followingconcepts of AI application in SG. Predictive Analytics in SG, AI-enabled Demand Response in SG, AI-enabled Control and Coordination in SG, AI-enabled security, stability, and reliability analysis in SG, andImplementation challenges of AI applications in SG. The study proceeds to discuss the proposedtheoretical approach and the chosen research methodology and then concludes with the expectedstudy contribution to research and practice.