The rapid integration of Artificial Intelligence (AI) in urban planning has redefined how modern cities operate. This research explores the ethical and operational challenges faced by municipal authorities when deploying AI-driven surveillance and traffic management systems. By analyzing case studies from developing economies, the paper identifies a significant gap between technological capabilities and policy frameworks.

The findings suggest that for AI to be truly effective in urban governance, a transparent data-sharing model must be established. This second phase of the study highlights the necessity of community engagement in the design process to ensure that smart city initiatives do not inadvertently marginalize vulnerable populations.