The goal of smart city development is to improve the quality of life by incorporating technology into daily activities. Artificial intelligence (AI) is critical to the ongoing development of future smart cities. The Internet of Things (IoT) idea connects every internet-enabled device for improved access and control. AI in various domains has changed ordinary towns into highly equipped smart cities. Machine learning and deep learning algorithms have proven indispensable in a variety of industries, and they are now being implemented into smart city concepts to automate and improve urban activities and operations on a large scale. IoT and machine learning technology are frequently used in smart cities to collect data from various sources. This article delves deeply into the significance, scope, and developments of AI-based smart cities. It also addresses some of the difficulties and restrictions associated with smart cities powered by AI. The goal of the study is to inspire and encourage academics to create original smart city solutions based on AI technologies.