Artificial Intelligence (AI) has been increasingly used in urban planning to tackle complex urban population growth and socioeconomic demands. AI data-driven methodologies have transformative potential for decision-making and policymaking in urban governance. However, a gap exists between AI’s theoretical promises and its practical integration into governance frameworks. While smart cities highlight technological advancements, they also expose socio-political challenges such as inclusivity, ethics, and public trust.
This study systematically reviews literature on AI adoption in urban planning and governance, examining decision-making advancements and the socio-political dimensions of AI integration. Unlike previous studies, our review connects technological innovation with governance contexts, offering a nuanced analysis of AI’s role in urban systems. The findings show that AI research in urban governance is concentrated in Europe, North America, and Asia, with Africa and Central America being underrepresented. Since 2020, AI research has surged due to smart city initiatives but remains mostly theoretical with limited practical applications in urban governance. Additionally, AI’s integration with public administration and urban studies is minimal, raising concerns about equity and transparency in algorithmic decision-making.
By identifying these gaps and challenges, this study provides actionable insights for policymakers, urban planners, and researchers. Inclusive governance frameworks that balance technological innovation with ethical and sociopolitical considerations are recommended, to ensure that AI-driven urban development promotes equitable, efficient, and sustainable outcomes.