The rapid integration of artificial intelligence (AI) into education, alongside global demands for sustainable development, has created an urgent need for teacher education programs to cultivate both AI literacy and sustainability competencies among future teachers. This study aims to systematically review and synthesize existing literature on the integration of AI literacy and sustainability competencies in teacher education. A systematic literature review guided by the PRISMA 2020 Statement was conducted across Scopus, Web of Science, ERIC, ScienceDirect, SpringerLink, Taylor and Francis, and Wiley Online Library, using a structured search string combining terms related to AI literacy, teacher education, and sustainability competencies. Twenty peer-reviewed studies published between 2018 and 2026 met the inclusion criteria and were analyzed through descriptive, thematic, and narrative synthesis. The results indicate a marked increase in AI literacy research following the widespread adoption of generative AI, a comparatively slower growth pattern in sustainability competency research, and very limited integration between the two domains within existing teacher education literature. The review proposes a conceptual framework in which AI literacy strengthens digital pedagogical competence, which in turn supports the development of sustainability competencies necessary for future-ready teachers. These findings offer theoretical grounding for bridging the UNESCO AI Competency Framework for Teachers with the GreenComp Framework and provide practical direction for curriculum design in teacher education institutions.
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