Technical Debt is one of the biggest issues hindering the digital transformation of organizations. Cost of addressing debt has been rising. AI powered tools can overcome problems of traditional tools as they continuously learn and adapt new patterns. They can proactively detect issues, suggest refactoring, and provide insight to areas of improvement in the codebase, pushing for more sustainable software development practices. While AI offers tremendous potential for managing and reducing technical debt, AI based tools come with their own challenges as AI is heavily dependent on the quality and quantity of data on which they are trained. As organizations rely more and more on AI, they may end up with monotonous codebases producing mediocre products as use of AI will lead to skill degradation and affect critical thinking.