Cities are rapidly changing due to Artificial intelligence (AI) which is creating “AI-powered” cities or “smart” cities. These cities incorporate machine learning, data analytics and automation into the city’s infrastructure and public utility services. The benefit for city residents is improved efficiency and the benefit for national economies is exponential growth. AI cities are dependent on data. Sensors, monitors and internet-connected devices collect data on the daily consumption of energy, infrastructure safety and many event types of utilisation data. AI analyses the data and makes decisions that optimise the operation of these resources to reduce congestion and safely distribute resources. This AI provides the infrastructure and a national economy a safe and reliable way to become less expensive and more productive. AI cities also provide important economic resources, including efficiencies. A “smart” energy grid employs AI to reduce the distribution of services. This goal of the “smart” grid is to eliminate the loss of services and increase the affordability of services. In a “smart” water management system, savings of lost resources, of high value, provide for positive economic growth of the nation to be funded by other services. Of particular importance are the positive results provided to the community of healthcare and educational services. AI cities draw investment and foster innovation ecosystems. Digital infrastructure attracts technology companies, startups and research institutions. As innovation hubs develop, new products, services and business models are created. Startups, in turn, grow, scale and create jobs while raising exports and contributing to GDP growth. Employment also changes. AI and automation improve the nature of work and replace jobs. New fields of work, like data science, cybersecurity and software engineering, emerge. Increased demand for skilled professionals also cultivates improvements in education, paving the way for a future-ready workforce. System improvements also raise the competitive nature of