Rapid urbanization and low residential resources in cities are serious issues that are making city life difficult day by day. The development of smart cities is becoming a need of the present era due to the swift increase in population and environmental issues globally. Smart cities are being introduced in different regions of the world with the incorporation of latest technologies. The incorporation of Artificial Intelligence (AI) is one of the tools that can be used in smart building and cities. AI technologies are transforming public safety, trash management, healthcare, traffic control, and resource management, making cities more sustainable, effective, and responsive to their citizens' demands. There are still lack of awareness in some areas of the world on the efficacy of smart building and construction that is impacting negatively on the economy and growth of those countries.; such as Pakistan is one of those countries that is facing serious challenges due to increased population, urban migration, and poor management of natural resources. The need of planning smart strategies for smart building is very crucial to manage population and housing issues. Smart buildings and cities provide unique and convenient facilities to its residents so that they can contribute positively towards the economy of country. This paper focuses at important areas where AI has the most effects in order to investigate how integrating AI improves quality of life in smart cities. The aim is to highlight artificial intelligence's contribution to improving urban operations, streamlining resource management, and advancing sustainability. Additionally, potential concerns about privacy, data security, and fair access will be discussed. In order to show how AI-driven innovations like predictive analytics, machine learning, and IoT-enabled systems are changing the urban environment, the study synthesizes existing research and real-world examples. The evaluation also covers how AI promotes smart government, tailored urban services, and citizen involvement. The conclusion emphasizes that although AI has great potential to improve the quality of life in smart cities, implementation of the technology must be done in a balanced way to prioritize inclusive policies and ethical concerns for the general welfare of residents.