Abstract The influence of artificial intelligence (AI) in smart cities has resulted in enhanced efficiency, accessibility, and improved quality of life. However, this integration has brought forth new challenges, particularly concerning data security and privacy due to the widespread use of Internet of Things (IoT) technologies. The article aims to provide a classification of scientific research relating to artificial intelligence in smart city issues and to identify emerging directions of future research. A systematic literature review based on bibliometric analysis of Scopus and Web of Science databases was conducted for the study. Research query included TITLE-ABS-KEY (“smart city” AND “artificial intelligence”) in the case of Scopus and TS = (“smart city” AND “artificial intelligence”) in the case of the Web of Sciences database. For the purpose of the analysis, 3101 publication records were qualified. Based on bibliometric analysis, seven research areas were identified: safety, living, energy, mobility, health, pollution, and industry. Urban mobility has seen significant innovations through AI applications, such as autonomous vehicles (AVs), electric vehicles (EVs), and unmanned aerial vehicles (UAVs), yet security concerns persist, necessitating further research in this area. AI’s impact extends to energy management and sustainability practices, demanding standardised regulations to guide future research in renewable energy adoption and developing integrated local energy systems. Additionally, AI’s applications in health, environmental management, and the industrial sector require further investigation to address data handling, privacy, security, and societal implications, ensuring responsible and sustainable digitisation in smart cities.