Urban development relies on Artificial Intelligence (AI) for creating efficient and sustainable intelligent ecosystems which redefine cities into their modern form. The research investigates how AI maximizes traffic systems along with improving power efficiency as well as waste recycling and administrative processes. Singapore obtained remarkable results from their AI-powered traffic management system because public transport efficiency rose despite a 35% decrease in traffic congestion from 80% in 2018 to 45% in 2022. The implementation of AI infrastructure together with predictive analytics and real-time monitoring systems delivered optimized urban mobility combined with improved commuting experiences. AI supports smart city growth through its ability to handle live energy systems along with distributing resources effectively and strengthening computer-based government systems. The strategic use of digital twins combined with geospatial data analysis through artificial intelligence simulations helps municipalities conduct data-based city development decisions. Supplementary measures need to regulate the deployment of AI because citizens must have privacy protections coupled with secure data handling and unbiased systems. AI together with evolving technologies including IoT and edge computing and blockchain purposes will power adaptive and sustainable smart cities of the future. The transformational advantages of AI require ethical management of technology progress to develop urban environments that include all groups and prepare for the future. The study demonstrates that AI technology will enable sustainable urban renewal as it tackles essential social issues.