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With the increasing prevalence of Smart Grid Cyber Physical Systems with Advanced Metering Infrastructure (SG CPS AMI), securing their internal components has become one of the paramount concerns. Traditional security mechanisms have proven to be insufficient in defending against sophisticated attacks. Bioinspired security and privacy models have emerged as promising solutions due to their stochastic solutions. This paper proposes a novel bio-inspired security and privacy model for SG CPS AMI that utilizes machine learning to strengthen their security levels. The proposed model is inspired by the hybrid Grey Wolf Teacher Learner based Optimizer (GWTLbO) Method’s ability to detect and respond to threats in real-time deployments. The GWTLbO Model also ensures higher privacy by selecting optimal methods between k-privacy, t-closeness & l-diversity depending upon contextual requirements. This study improves system accuracy and efficiency under diverse attacks using machine learning techniques. The method uses supervised learning to teach the model to recognize known attack trends and uncontrolled learning to spot unknown attacks. Our model was tested using real-time IoT device data samples. The model identified Zero-Day Attacks, Meter Bypass, Flash Image Manipulation, and Buffer-level attacks. The proposed model detects and responds to attacks with high accuracy and low false-positive rates. In real-time operations, the proposed model can handle huge volumes of data efficiently. The bioinspired security and privacy model secures CPS efficiently and is scalable for various cases. Machine learning techniques can improve the security and secrecy of these systems and revolutionize defense against different attacks.