With the rapid growth of urban populations and the increasing complexity of urban environments, cities are adopting innovative technologies to enhance service delivery and improve residents’ quality of life. The concept of smart cities has emerged as a strategic framework to address issues such as traffic congestion and inadequate public services. In this context, AI chatbots have become essential tools, providing efficient, real-time, and personalized interactions between city authorities and their constituents. By leveraging advanced technologies, these chatbots can facilitate access to information and services, thereby enhancing citizen engagement and responsiveness. Despite the significant advantages offered by AI chatbots, their integration into urban management is not without its challenges. Data privacy concerns, the digital divide that limits equitable access, and the requirement for reliable infrastructure can impede the effective deployment of these technologies. Moreover, there is a lack of comprehensive research exploring the multifaceted impact of chatbots on urban service delivery. This paper aims to investigate the transformative role of AI-based chatbots in enhancing urban service delivery within smart cities. Specifically, it analyzes how chatbots can improve communication, enhance access to essential services, and foster active citizen engagement. Through an in-depth examination of various case studies, this research highlights successful implementations of chatbots in smart cities. It identifies key challenges that need to be addressed for their effective integration. Ultimately, this work contributes to a deeper understanding of how AI chatbots can shape the future of urban management, emphasizing the importance of collaboration among stakeholders to leverage the benefits of these technologies.