Bihar’s socio-economic landscape is predominantly agrarian, with over 70% of its workforce engaged in agriculture and allied sectors. However, rural growth in Bihar faces persistent structural bottlenecks, including small and fragmented landholdings (over 90% marginal and smallholders), frequent hydro-meteorological shocks (floods and droughts), inadequate post-harvest infrastructure, and information asymmetry. This study investigates the transformative potential of Artificial Intelligence (AI) as an engine for inclusive development in rural Bihar. Adopting a qualitative literature review and synthesis methodology, this research evaluates contemporary academic literature, policy frameworks (such as the Digital Agriculture Mission and National Strategy for AI), and case studies of agritech deployments across Eastern India. The findings indicate that AI-driven solutions—including predictive flood forecasting, computer vision-based pest diagnosis, voice-enabled multilingual extension services (e.g., BHASHINI integration), and algorithmic market linkages—substantially mitigate climate risks and input inefficiencies. Furthermore, the integration of AI within rural governance and community architectures (e.g., JEEViKA self-help group networks) fosters economic inclusion, particularly for smallholder farmers and women agripreneurs. However, realization of these benefits remains constrained by the digital divide, lack of localized dataset representation, limited rural connectivity, and low algorithmic literacy. This paper provides actionable policy recommendations to establish a localized, ethical, and multi-stakeholder AI ecosystem tailored to Bihar’s agro-ecological demands.