The rapid growth of livestock production has resulted in the generation of large volumes of animal biowaste, creating environmental challenges including greenhouse gas emissions, nutrient leaching, water pollution and inefficient waste disposal. Conventional production systems often lack consistent product quality, poor process control and limited operational efficiency. This study developed and evaluated a smart-based nano biochar production system integrating Internet of Things (IoT) sensors, Artificial Intelligence (AI)-driven optimization and thermochemical conversion technologies for the valorization of cattle manure, poultry litter and pig manure. Animal biowaste feedstocks were characterized for physicochemical properties before undergoing pyrolysis at temperatures ranging from 400-600°C and residence times of 30-90 minutes under oxygen-limited conditions. Real-time monitoring was conducted using temperature, moisture, pressure and gas sensors connected to a cloud-based platform. Machine learning algorithms were employed to optimize process parameters and maximize biochar quality. The resulting biochar was converted into nano biochar through ball milling and ultrasonication and characterized using Scanning Electron Microscopy (SEM), Fourier Transform Infrared Spectroscopy (FTIR), X-Ray Diffraction (XRD) and Brunauer–Emmett–Teller (BET) analyses. Results showed that poultry litter contained the highest nitrogen content 3.8%, while cattle manure exhibited the highest organic carbon content 42.6%. AI-optimized pyrolysis at 550°C increased biochar yield from 28.4% to 34.7% and improved fixed carbon content from 56.3% to 71.5%. Nano biochar particle size decreased from 150-300 μm to 65-95 nm, while BET surface area increased from 112.4 m² g⁻¹ to 426.8 m² g⁻¹. Energy consumption was reduced by 18.6% through smart process optimization. Use of smart technologies enhanced process stability, improved operational monitoring and consistent product quality. The study demonstrates the potential of integrating digital technologies with nano biochar production for sustainable waste management, climate-smart agriculture and circular economy implementation.