The rapid development of autonomous vehicles (AVs) and intelligent transportation systems (ITS) has the potential to revolutionize mobility, reshape urban infrastructure, and redefine societal norms of transportation. Leveraging artificial intelligence, advanced sensors, and connected vehicle technologies, AVs aim to enhance safety, efficiency, and accessibility. Simultaneously, ITS offers integrated, data-driven frameworks for managing traffic, reducing congestion, and enabling smart mobility services. However, this transformation faces critical engineering challenges, including sensor fusion reliability, cybersecurity threats, and the scalability of vehicular communication networks. Ethical dilemmas surrounding decision-making algorithms, liability in accidents, and privacy further complicate the path toward full-scale deployment. Moreover, the integration of AVs and ITS will necessitate major urban infrastructure reconfigurations, ranging from road design to traffic law reform. This paper explores the technological, ethical, and societal dimensions of AVs and ITS, outlining opportunities, challenges, and the transformative potential of these innovations in creating sustainable, resilient urban mobility systems.