The convergence of artificial intelligence (AI) and urban planning presents a transformative opportunity, enabling more efficient, sustainable cities. Key applications include AI-based urban design systems, like Tsinghua University's, which outperform human planners, and tools like Digital Blue Foam's Urban Insights for rapid prototyping. Digital twins, exemplified by projects like BuildMedia's Wellington simulation, allow for pre-implementation testing. AI aids resilience against climate change, seen in Google's Tree Canopy tool for heatwave mitigation and IBM's carbon storage measurement system. Colombia's MAIIA software uses AI to map informal settlements, aiding policy prioritization. AI enhances community engagement through VR/AR for visualizing proposed changes and data-driven mobility solutions, including safety monitoring. Challenges include data scarcity and ethical considerations, highlighting the need for collaboration among stakeholders.