The rapid growth of Indonesia's e-commerce industry in the era of Industry 4.0 and Society 5.0 requires companies to be not only competitive but also able to achieve long-term sustainability. Despite the widespread adoption of digital technologies and artificial intelligence (AI), many e-commerce companies still face profitability and sustainability challenges. This study aims to analyze the influence of AI Literacy (AIL) and Digital Transformation (DT) on Sustainable Organizational Performance (SOP), with Digital Leadership (DL) as a mediating variable. The research approach used is quantitative with the Structural Equation Modeling–Partial Least Squares (SEM-PLS) technique. Data was collected through an online questionnaire from 273 marketing division employees from the five largest e-commerce companies in Indonesia (Shopee, Tokopedia, Lazada, Blibli, and Bukalapak) who were selected by purposive sampling. The results show that AI Literacy and Digital Transformation have a direct negative influence on sustainability performance, showing the paradox that technological readiness does not automatically produce sustainable performance. On the contrary, Digital Leadership plays a significant role as a mediator, which transforms these negative effects into positive indirect influences through adaptive and strategic leadership. The implications of this study show that digital literacy and transformation do not automatically improve organizational sustainability without adaptive and value-oriented leadership. For practitioners, these results emphasize the importance of investing in the development of digital leadership and organizational culture that aligns with ethics and sustainability goals. For academics, this research enriches the RBV theory by integrating the dimension of Dynamic Capabilities in the context of digitalization. Further research is suggested to expand the model by adding contextual variables such as organizational culture, AI governance, or green innovation to make the understanding of the relationship between technology and sustainability more comprehensive