Abstract: Insulation coordination and surge protection devices (SPDs) are fundamental to the safety and reliability of modern power systems, especially in renewable energyintegrated grids. These systems protect critical electrical infrastructure from transient overvoltages, ensuring stable and sustainable operation. However, traditional methods, such as simulation-based analyses and manual fault detection, face challenges in scalability, adaptability, and efficiency, particularly in dynamic energy environments. Advancements in artificial intelligence (AI) and Internet of Things (IoT) technologies have introduced transformative capabilities for insulation coordination and SPDs. AI techniques, such as machine learning and neural networks, enable precise fault prediction, real-time monitoring, and adaptive control, significantly enhancing grid reliability. IoT-enabled SPDs further improve operational efficiency through predictive maintenance and continuous performance monitoring, aligning with sustainable energy goals. These innovations also address the needs of resilient infrastructure development, smart grid implementation, and urban sustainability. This paper explores the evolution of these systems, emphasizing the shift from traditional to AI-driven and hybrid approaches. By integrating advanced technologies, power systems can achieve enhanced reliability, efficiency, and resilience.