This research explores the evolution of Deep Brain Stimulation (DBS) to treat Treatment-Resistant Depression (TRD) which iss a severe condition unresponsive to traditional medications or hormone therapies. It critically evaluates current DBS applications and limitations, proposing an advance from traditional continuous stimulation to a smart, "closed-loop" prototype integrated with artificial intelligence. Unlike older systems, this AI-driven approach uses electrodes to continuously monitor brain activity. When the AI detects specific neural biomarkers signaling a sudden depressive shift or neurodisorder anomaly, it instantly triggers targeted electrical stimulation to mood-regulating hubs. This dynamic, real-time response maximizes efficacy while reducing side effects, driving the need for advanced hardware prototypes. Eventually, the research examines the profound neuroethical implications of this technology. It questions how AI-regulated mood impacts patient autonomy, asking if emotions remain genuine when modulated by an algorithm. Furthermore, it highlights the ethical complexities of securing truly informed consent for invasive brain surgery from highly vulnerable psychiatric populations. Ultimately, the project bridges neuroscience, AI engineering, and ethics to propose a transformative, adaptive cure for TRD