This research paper delves into the transformative potential of artificial intelligence (AI) within transportation tracking systems, spotlighting its profound impact on the industry. With the transportation landscape continually evolving, the integration of AI-powered automation in tracking processes heralds a paradigm shift in how vehicles are monitored and managed. Through a meticulous examination of cutting-edge techniques, persistent challenges, and notable benefits, this paper unveils the pivotal role of AI in optimizing operational efficiency, elevating tracking accuracy, and fortifying safety standards across transportation networks. Real-world case studies and technological breakthroughs are scrutinized, offering concrete illustrations of AI's capacity to reshape tracking systems. These examples underscore the diverse possibilities AI presents, from predictive analytics to dynamic routing algorithms. As AI's capabilities are harnessed, the transportation sector stands poised for a future defined by seamless, effective, and intelligent tracking solutions, fostering enhanced reliability and agility in the face of evolving demands.