As AI-based smart homes become increasingly popular, there is a need to better understand the benefits and challenges of this emerging technology. A survey on AI-based smart homes can provide valuable insights into user needs, adoption rates, user satisfaction, barriers to adoption, and opportunities for innovation. This research overviews the cutting-edge literature on smart home development with an emphasis on the utilization of artificial intelligence (AI) approaches in this application area. We begin with a review of AI technologies and the smart home necessities needed to implement AI. Then, we introduce several applications of AI for smart homes and describe the most popular approaches already present in literary works. The open Issues (e.g., security and privacy, data collection and sharing, data analytics, and latency) meeting the development of smart homes are also discussed in this work. Finally, the paper suggests some directions for future study that could be fruitful.