The Internet of Things (IoT) offers enormous benefits in terms of the development of smart cities, as it can improve the capability of smart city applications and the service quality provided to businesses, people and governments. When artificial intelligence (AI) is used in conjunction with smart city IoT applications, many valuable insights can be provided to all stakeholders to enable better decisions and a smarter community. The aims of the paper are to develop an understanding of the development of AI-based smart city IoT applications, to identify managerial perspectives, technical perspectives and issues related to the development framework, and to explore the use of different algorithms at the analytical level of applications.