In recent years, artificial intelligence technology, with its numerous applications in urban management, has become one of the key pillars of transformation in this field. In this review article, the fundamentals of artificial intelligence, machine learning, and the general applications of AI were first introduced. Additionally, the concept of data governance, its layers, and its critical importance for municipalities were examined. The article then specifically discussed the applications of AI in smart cities and its role in addressing urban management challenges, demonstrating how this technology can contribute to improving transportation, enhancing public safety, optimizing waste management, strengthening urban planning, improving energy management, and facilitating city governance. Furthermore, the importance of prioritizing artificial intelligence applications in the city was discussed, and the implementation of artificial intelligence in urban management was analyzed. Finally, suggestions were provided for optimizing the use of artificial intelligence in urban management. These suggestions can be summarized as follows: 1. Enhancing organizational knowledge and expertise to fully harness the potential of AI; 2. Establishing the necessary technical infrastructures and integration between systems; 3. Collecting diverse data and formulating robust data governance; 4. Optimizing the application of AI technologies through testing; 5. Adopting a people-centered approach in proposing and designing AI projects. Given these points and the recognition of artificial intelligence’s capabilities in urban management, a more efficient use of this technology in cities can be achieved.