This paper provides a comprehensive review of the application of artificial intelligence (AI) in smart cities, focusing on six key areas: smart governance, smart economy, smart mobility, smart environment, smart living, and smart people. The authors conducted a literature review using Scopus, analyzing publications from 2021 to 2024. The review aims to identify AI solutions, barriers, and future directions in each area. In **Smart Governance**, AI is transforming public administration by enhancing efficiency, transparency, and citizen engagement. Key solutions include AI-driven e-governance services, chatbots, and multi-agent systems. Barriers include integration complexity, lack of expertise, data privacy, financial constraints, interoperability issues, and ethical concerns. Future directions involve data-driven decision-making, predictive policing, and real-time infrastructure monitoring. In **Smart Economy**, AI is fostering entrepreneurship and innovation, streamlining operations, and enhancing productivity. Solutions include AI-powered platforms for market analysis, customer support, and healthcare. Barriers include data privacy, lack of standardized regulations, skilled labor shortages, and financial constraints. Future directions involve smart financial systems, predictive analytics, and personalized marketing. In **Smart Mobility**, AI is optimizing traffic flow, reducing congestion, and enabling autonomous vehicles. Solutions include AI-based traffic management, shared mobility systems, and predictive maintenance for public transportation. Barriers include data privacy, interoperability, and ethical concerns. Future directions involve sustainable traffic management and integrated IoT and ITS applications. The paper highlights the potential benefits and challenges of AI in smart cities, providing valuable insights for policymakers, urban planners, and technologists. It emphasizes the need for responsible and equitable AI implementation, addressing ethical considerations, data privacy, and societal acceptance.This paper provides a comprehensive review of the application of artificial intelligence (AI) in smart cities, focusing on six key areas: smart governance, smart economy, smart mobility, smart environment, smart living, and smart people. The authors conducted a literature review using Scopus, analyzing publications from 2021 to 2024. The review aims to identify AI solutions, barriers, and future directions in each area. In **Smart Governance**, AI is transforming public administration by enhancing efficiency, transparency, and citizen engagement. Key solutions include AI-driven e-governance services, chatbots, and multi-agent systems. Barriers include integration complexity, lack of expertise, data privacy, financial constraints, interoperability issues, and ethical concerns. Future directions involve data-driven decision-making, predictive policing, and real-time infrastructure monitoring. In **Smart Economy**, AI is fostering entrepreneurship and innovation, streamlining operations, and enhancing productivity. Solutions include AI-powered platforms for market analysis, customer support, and healthcare. Barriers include data privacy, lack of standardized regulations, skilled labor shortages, and financial constraints. Future directions involve smart financial systems, predictive analytics, and personalized marketing. In **Smart Mobility**, AI is optimizing traffic flow, reducing congestion, and enabling autonomous vehicles. Solutions include AI-based traffic management, shared mobility systems, and predictive maintenance for public transportation. Barriers include data privacy, interoperability, and ethical concerns. Future directions involve sustainable traffic management and integrated IoT and ITS applications. The paper highlights the potential benefits and challenges of AI in smart cities, providing valuable insights for policymakers, urban planners, and technologists. It emphasizes the need for responsible and equitable AI implementation, addressing ethical considerations, data privacy, and societal acceptance.