AI technology is transforming the transportation industry by providing real-time insights, reducing operational costs, and enhancing safety. It is also improving logistics and supply chain management by optimizing routes, providing predictive maintenance insights, enhancing supply chain visibility, and optimizing inventory levels. However, challenges in implementing AI include data integration, cost, talent shortage, and security and privacy concerns. Overall, AI is revolutionizing transportation and logistics, and its adoption is expected to continue growing in the future.