Software engineering is evolving rapidly due to advancements in artificial intelligence (AI), automation, and cloud computing. However, the industry faces persistent challenges in scalability, maintainability, and ethical software development. This paper explores cuttingedge methodologies, including AI-assisted coding, self-healing software, and sustainable engineering practices. It presents a novel framework that integrates AI-driven software development, Green IT principles, and adaptive engineering models to enhance efficiency, reduce technical debt, and promote the development of ethical and sustainable software solutions.