The proportional integral derivative (PID) controller is one of the most robust and simplest configuration controllers used for industrial applications. However, its performance purely depends on the tuning of its proportional (KP), integral (KI) and derivative (KD) gains. Therefore, a proper combination of these gains is primarily required to achieve an optimal performance of the PID controllers. The conventional methods of PID tuning such as Cohen-Coon (CC) and Ziegler−Nichols (ZN) generate unwanted overshoots and long-lasting oscillations in the system. Owing to the mentioned problems, this paper attempts to achieve an optimized combination of PID controller gains by exploiting the intelligence of the whale optimization algorithm (WOA) and one of its recently introduced modified versions called improved whale optimization algorithm (IWOA) in an automatic voltage regulator (AVR) system. The stability of the IWOA-AVR system was studied by assessing its root-locus, bode maps, and pole/zero plots. The performance superiority of the presented IWOA-AVR design over eight of the recently explored AI-based approaches was validated through a comprehensive comparative analysis based on the most important transient response and stability metrics. Finally, to assess the robustness of the optimized AVR system, robustness analysis was conducted by analyzing the system response during the variation in the time constants of the generator, exciter, and amplifier from −50% to 50% range. The results of the study prove the superiority of the proposed IWOA-based AVR system in terms of transient response and stability metrics.