In modern times, the rapid expansion of urban populations has intensified the urgency to optimize transportation systems, which has become an alarming issue in the face of urbanization and traffic congestion. This paper reviews the latest applications of Artificial Intelligence (AI) in the transport sector. It explores various AI methodologies, including Artificial Neural Networks (ANN), Genetic Algorithms (GA), Simulated Annealing (SA), Ant Colony Optimizer (ACO), Bee Colony Optimization (BCO), disruptive urban mobility, Fuzzy Logic Models (FLM), automated incident detection systems, and drones, which improve dynamic traffic management and route optimization. The study reveals that integrating these AI techniques with real-time data analytics improves traffic flow, automated incident management, and overall transportation efficiency. The results demonstrate that AI-driven systems, such as drones equipped with advanced sensors and AI algorithms, are increasingly capable of autonomous navigation, real-time monitoring, and predictive traffic management. These advancements in technologies, such as electric Vertical Take-off and Landing (eVTOL) aircraft, Hyperloop Transportation Technologies (HTT), Mobility-as-a-Service (MaaS) and autonomous delivery robots, contribute to smarter urban mobility solutions. However, it is important to focus on refining AI models for better performance, addressing challenges such as computational complexity and privacy concerns, and continuing to innovate in AI to improve the economic efficiency and reliability of transportation systems. Furthermore, to promote sustainability development in this sector, ethical considerations such as the protection of user information and the integration of the concepts of informed consent and human autonomy with community engagement programs should also be considered.