The increasing demand for fast and cost effective last mile delivery solutions has catalyzed significant advancements in drone based logistics. This research describes the development of an AI integrated drone delivery system, focusing on route optimization, object detection, secure package handling, and real time tracking. The proposed system leverages YOLOv4 Tiny for object detection, the NEO 6M GPS module for navigation, and the A7670 SIM module for real time communication. A comparative analysis of lightweight AI models and hardware components is conducted to determine the optimal configuration for real time UAV based delivery. Key challenges including battery efficiency, regulatory compliance, and security considerations are addressed through the integration of machine learning techniques, IoT devices, and encryption protocols. Preliminary studies demonstrate improvement in delivery time compared to conventional ground based logistics, along with high accuracy recipient authentication through facial recognition. The study also discusses ethical implications and societal acceptance of drone deliveries, ensuring compliance with FAA, EASA and DGCA regulatory standards. Note: This paper presents the architecture, design, and preliminary simulation results of the proposed system. Experimental results, simulation benchmarks, and deployment statistics are currently being acquired. A comprehensive analysis will be included in the extended version of this work.