The research aims to describe new approaches and directions in the use and development of smart city technologies. The authors apply comparative analysis to identify the correlation between digitalization (smart city technologies) and the improvement of people’s quality of life in cities, using Moscow as an example. The research object is the digital infrastructure of Moscow. The prospects and realities of AI as one of the main drivers of smart city development are undeniable. However, rapid progress has also revealed various moral and ethical issues. Without addressing these, the successful creation of smart cities cannot be assured. Developing ethical principles and behavioral standards for using AI systems is necessary. Based on the analysis of changes in the quality of life in large metropolises, the authors determined that a new quality of life and economic growth has emerged in cities under the influence of the smart economy. The advantages of digitalization include increased purchasing power, advances in healthcare, reduced inflation, and less commuting time due to the growth of online economic activities. However, the issue of adhering to ethical standards is highly relevant in the smart economy; its resolution will impact the further improvement of the quality of life in cities.