The global transport sector, a significant contributor to energy consumption and greenhouse gas (GHG) emissions, requires innovative solutions to meet sustainability goals. Artificial intelligence (AI) has emerged as a transformative technology, offering opportunities to enhance energy efficiency and reduce GHG emissions in transport systems. This study provides a comprehensive review of AI’s role in optimizing vehicle energy management, traffic flow, and alternative fuel technologies, such as hydrogen fuel cells and biofuels. It explores AI’s potential to drive advancements in electric and autonomous vehicles, shared mobility, and smart transportation systems. The economic analysis demonstrates the viability of AI-enhanced transport, considering Total Cost of Ownership (TCO) and cost-benefit outcomes. However, challenges such as data quality, computational demands, system integration, and ethical concerns must be addressed to fully harness AI’s potential. The study also highlights the policy implications of AI adoption, underscoring the need for supportive regulatory frameworks and energy policies that promote innovation while ensuring safety and fairness.