Integrating Artificial Intelligence of Everything (AIoE) and blockchain technology offers transformative potential for developing secure, efficient, and transparent smart cities. AIoE, with its advanced data analytics and predictive capabilities, enhances urban infrastructure by optimizing traffic flow, energy consumption, public safety, healthcare services, and governance. Blockchain technology complements these capabilities by ensuring data integrity, security, and transparency through its decentralized, immutable ledger. This research explores the fundamental principles of AIoE and blockchain, examines their synergistic relationship, and analyzes their practical applications across various smart city domains. Additionally, it delves into the challenges and risks associated with their integration, including scalability limitations, data privacy concerns, cybersecurity threats, interoperability issues, and regulatory uncertainties. Through the analysis of innovative case studies and potential solutions, the study highlights the need for standardized protocols, privacy-preserving techniques, and collaborative efforts between policymakers, researchers, and industry stakeholders. The findings suggest that the convergence of AIoE and blockchain can significantly improve urban resilience, sustainability, and citizen engagement if implemented with robust infrastructure, ethical considerations, and transparent governance frameworks. This research provides valuable insights for future developments in smart city technologies and outlines key areas for continued investigation and optimization.