The sixth-generation wireless networks are required to satisfy the ever-increasing demands of diverse applications to guarantee power savings, energy efficiency, mass connectivity, and higher integration of devices. To accomplish these goals, in this paper, an artificial intelligence (AI)-based holographic MIMO (HMIMO)-empowered cell-free (CF) network is proposed while leveraging integrated sensing and communication (ISAC). The proposed AI-based framework allocates the desired power for beamforming by activating the required number of grids from the serving HMIMO base stations (BSs) in the CF network to serve the users. An optimization problem is formulated that maximizes the sensing utility function, which in turn maximizes the signal-to-interference-plus-noise ratio (SINR) of the received signal, the sensing SINR of the reflected echo signal, as well as energy efficiency, ensuring efficient power allocation. To solve the optimization problem, an AI-based framework is proposed to enable a decomposition of the NP-hard problem into two subproblems: a sensing subproblem and a power allocation subproblem. Initially, a variational autoencoder (VAE)-based scheme is utilized to solve the sensing subproblem that identifies the current location of the users with the sensing information. Then, a transformer-based mechanism is devised to allocate the desired power to users by activating the required grids from the serving HMIMO BSs in the CF network based on the sensing information achieved with the VAE-based scheme. Simulation results demonstrate that the proposed AI-based framework performs better than the long short-term memory, gated recurrent unit-based mechanisms, with cumulative power savings of 8.64%, and 16.02%, and cumulative energy efficiency of 14.49%, and 16.61%, accordingly, taking the ground truth values into consideration. Therefore, the proposed AI-based framework ensures efficient power allocation for beamforming using ISAC to serve heterogeneous users.