This chapter discusses the combination of nanotechnology and artificial intelligence (AI) in the creation of smart materials as well as smart systems. It describes how nanotechnology improves smart materials by manipulating nanoscale structures to make them more sensitive, durable and versatile. Furthermore, this chapter explores the integration of AI into these smart materials and systems to optimize their design, control and monitoring using machine learning methods and other methods such as computational simulations. The main themes include the various smart materials implemented by nanotechnology, including shape memory alloys, piezo-electric materials, electrical dyes, and their practical applications in health care, aerospace, consumer electronics and robotics. The chapter also focuses on smart systems, which provide examples of a variety of adaptive controls; predictive maintenance; self-regulation; portable equipment; and emphasize the introduction of adaptive automotive systems. By combining nanotechnology and artificial intelligence, we see smart systems becoming smarter than ever before. Furthermore, successful integration of smart materials based on nano-supported artificial intelligence has been proven by case studies. In addition, the chapter looks at emerging technological trends such as increased integration, emphasis on sustainability among others and new applications in areas like sensors, operators, biomedical and environmental monitoring. In general, this chapter provides a comprehensive overview of how the combination of nanotechnologies and artificial intelligence promotes innovation in smart materials and smart systems and provides insight into the current environment and future prospects. It also addresses challenges and ethical considerations associated with these technologies and highlights the potential to create smarter and more sustainable solutions.