Urban areas are rapidly expanding and this brings with a set of complicated problems. Things like traffic jams, rising energy bills, overflowing landfills, and public safety concerns are becoming everyday issues for city residents. This paper looks at how artificial intelligence can play a practical role in fixing these problems. AI is making everything rapid and faster, from managing road signals to making everything work wisely and securely. At the same time, the paper does not ignore the hurdles, like data security, the cost of setting up these systems, and making sure that benefits reach every part of society, not just wealthy neighbourhoods. This study also examines how artificial intelligence can help cities better prepare for long-term challenges like climate change, population growth, and natural disasters. By looking at existing AI projects around the world, this research aims to give a realistic view of the current state and potential of AI in city infrastructure.