In the present report, the combined effects of the co-doping of metal oxide (Bi2O3) and Lithium oxide (Li2O) into the glassy matrix with chemical composition xLi2O-(0.45-x)Bi2O3-(0.15ZnO-0.40P2O5) (x = 0.05, 0.15, 025, and 0.35 mol%) are investigated thoroughly. The FESEM and X-ray diffraction data affirm the crystalline nature of the studied glassy composites. The obtained band gap energy values are declined from (3.68–3.17) eV, while the Urbach energy values are declined from (0.38–0.27) eV. Moreover, the mechanism responsible for AC conductivity has been analyzed using Almond–West formalism and Jonscher's universal power law. The observed rise in both AC and DC conductivity in the glass samples is attributed to the mixed ionic electronic effect. In the ionic diffusion model, an increased defect site concentration improves Li+ ion migration through percolation channels. The reduction in both electrostatic binding energy and strain energy lowers the Anderson-Stuart activation energy, facilitating Li+ ion migration and enhancing conductivity. Additionally, in the small polaron hopping model, an increase in the density of defect states suggests more defect sites that facilitate electronic hopping, creating deep localized states and transitions between localized and extended states. Replacing a Bismuth atom with a Lithium atom increases the number of non-bridging oxygen, enhancing the conduction band tail, reducing the energy needed for hopping conductivity, and increasing conductivity.