Shiferaw Mitiku (PhD)Henok Birhanu2026-11-132026-11-132026-10https://etd.aau.edu.et/handle/123456789/9520This study examines the strategic role of digital transformation and Artificial Intelligence (AI) deployment in driving sustainable logistics management within the context of Addis Ababa, Ethiopia. Amidst institutional efforts such as the Digital Ethiopia 2025 framework, a notable implementation gap persists between high-level policy visions and localized operational realities. To evaluate this ecosystem, the study adopted a quantitative, descriptive research design. Primary empirical data was gathered via structured questionnaires from 108 validated practitioners (a 90% response rate) across strategic public institutions including the Ethiopian Shipping and Logistics Service Enterprise (ESLSE) and the Ethiopian Artificial Intelligence Institute (EAII) and premier private logistics firms. The empirical findings reveal a highly fragmented digitization landscape. While baseline transactional technologies, such as real-time GPS fleet telematics (M = 3.89) and FinTech payment solutions (M = 4.04), exhibit high adoption integration, critical core logistics frameworks, including Automated Warehouse. Management Systems (WMS) and customs-linked Electronic Data Interchange (EDI), remain moderately underutilized. Furthermore, advanced AI maturity is severely constrained by systemic infrastructural deficits, primarily unreliable power grids and a scarcity of localized AI technical vendors, alongside prominent organizational barriers such as prohibitive capital requirements and localized digital literacy gaps. Conversely, structural optimization models indicate that advanced AI deployment yields substantial latent opportunities for sustainable logistics, specifically driving economic cost-efficiencies, reducing fossil fuel consumption, and elevating end-to-end supply chain transparency. To mitigate these structural friction points, the study concludes with a policy roadmap, emphasizing the immediate imperative for targeted government-backed digital skills training frameworks, import tax exemptions on specialized logistics hardware, and the establishment of a unified national data-sharing infrastructureen-USArtificial IntelligenceDigital TransformationSustainable Logistics ManagementInfrastructure ReadinessSupply Chain IntegrationAddis AbabaEthiopia.Thesis