The rapid pace of urbanization in the twenty-first century has presented cities with unprecedented challenges. These developments have prompted the emergence of smart cities as a transformative model for urban development. Smart cities are leveraging advanced technologies, such as Artificial Intelligence (AI), to enhance the quality of life for residents while promoting sustainability and economic growth. Despite its promise, integrating AI into smart cities raises critical ethical, social, and technical challenges. Furthermore, deploying AI technologies requires robust infrastructure, skilled human capital, and supportive regulatory frameworks. This chapter examines the multifaceted relationship between AI and smart cities, tracing the historical evolution of both concepts and examining the technologies that underpin their integration. It explores the practical applications of AI in urban infrastructure and governance, presents real-world examples, and examines the benefits and risks associated with adopting AI. The chapter provides valuable insights into future trends and offers policy recommendations to guide the ethical and effective use of AI in shaping tomorrow’s cities.