The advent of Artificial Intelligence (AI) has significantly transformed industries worldwide, with the transport sector standing as one of the most affected. Ride-hailing services like Ola and Uber have revolutionized urban mobility, offering on-demand services through mobile applications. This paper investigates the role of AI in transforming auto transport services in the Mumbai suburbs, focusing on Ola and Uber. It examines how these companies use AI technologies to improve service efficiency, customer satisfaction, and operational costs. Through primary data collection and secondary sources, this paper explores the impact of AI on the dynamics of auto transport, specifically in terms of optimization algorithms, predictive maintenance, demand-supply matching, and user experience. The findings reveal that AI-driven innovations are enhancing the performance of auto-rickshaw services in Mumbai's suburbs, making them more reliable, cost-effective, and efficient.