As we landed in the twenty-first century there is an urge to develop a resilient as well as sustainable urban environments owing to global warming. Artificial Intelligence (AI) can be a significant tool to deal with different factors that arises due to climate change. This chapter will explore the fundamental role of AI in the development of smart urban cities and enhancing their resilience to climate-related stresses. AI plays a significant role in urban area to efficient predictive modelling, data analysis as well provide a support to decision making in various sectors i.e. waste management, urban planning, energy and transportation. AI system act as a heart of different smart cities by playing its significant role in different areas i.e. by controlling traffic system, air quality monitoring, minimize energy consumption, climate change adaptation etc. Furthermore, AI is helpful to identifies vulnerable urban zones and provides help to intimate public about extreme weather events such as floods, heatwaves, and storms. Urban resilience is further reinforced through AI-assisted infrastructure planning that integrates climate risk assessments and sustainable development goals. Besides this AI pays an indispensable role to optimize resource allocation and enhances circular economy practices by improving recycling systems (Birkmann et al. in Sustain. Sci. 5:185–206, 2010). Even though AI processes a transformative power still it faces certain challenges i.e. algorithmic bias, data privacy, the digital divide etc. Therefore, to ensure equitable and inclusive smart city development with sustainability; management of these problems is mandatory. Further research and interdisciplinary collaboration can speed up AI’s full potential in shaping the cities as per climate conditions to service the public.