Drought is deemed a major natural disaster that can lead to severe economic and social implications. Drought indices are utilized worldwide for drought management and monitoring. However, as a result of the inherent complexity of drought phenomena and hydroclimatic condition differences, no universal drought index is available for effectively monitoring drought across the world. Therefore, this study aimed to develop a new meteorological drought index to describe and forecast drought based on various artificial intelligence (AI) models: decision tree (DT), generalized linear model (GLM), support vector machine, artificial neural network, deep learning, and random forest. A comparative assessment was conducted between the developed AI-based indices and nine conventional drought indices based on their correlations with multiple drought indicators. Historical records of five drought indicators, namely runoff, along with deep, lower, root, and upper soil moisture, were utilized to evaluate the models' performance. Different combinations of climatic datasets from Alice Springs, Australia, were utilized to develop and train the AI models. The results demonstrated that the rainfall anomaly drought index was the best conventional drought index, scoring the highest correlation (0.718) with the upper soil moisture. The highest correlation between the new and conventional indices was found between the DT-based index and the rainfall anomaly index at a value of 0.97, whereas the lowest correlation was 0.57 between the GLM and the Palmer drought severity index. The GLM-based index achieved the best performance according to its high correlations with conventional drought indicators, e.g., a correlation coefficient of 0.78 with the upper soil moisture. Overall, the developed AI-based drought indices outperformed the conventional indices, hence contributing effectively to more accurate drought forecasting and monitoring. The findings emphasized that AI can be a promising and reliable prediction approach for achieving better drought assessment and mitigation.