This paper explores the transformation of urban development through smart city solutions enabled by AI-driven engineering. Through case studies and research insights, it investigates how artificial intelligence is reshaping traditional urban practices, including transportation, energy, infrastructure, and public services. The study highlights the application of AI techniques such as data analytics, IoT sensors, and urban modeling in improving efficiency, sustainability, and livability in cities. Additionally, it discusses the integration of AI with smart transportation systems, energy management platforms, and citizen engagement tools to enable real-time monitoring, data-driven decision-making, and participatory governance in smart cities. The paper also addresses challenges such as data privacy, digital divide, and governance framework in the adoption of AI-driven engineering solutions in urban development. It emphasizes the importance of collaboration, inclusivity, and resilience in leveraging AI's potential to transform urban landscapes and create more vibrant, equitable, and sustainable cities for all.