The Research on the Internet of Things (IoT) has paved the way for a revolution in community services. It was found that the application of IoT in a smart city is mainly carried out without major human intervention. The different uses of IoT devices allow interfaces to available systems, improve communication and perform a variety of tasks. In addition, the availability of multiple IoT devices has been shown to be compatible to protect integrity, collect and analyze information, and improve functionality. The study is focused in understanding the critical role Artificial Intelligence empowered Internet of Things (IoT) for creating Smart city. The researchers have used extensive data analysis by collecting the data from the respondents to understand the importance of AI empowered IoT in creating better smart city. The analysis is focused in using regression tools and other key data analysis to test the hypothesis. Based on the overall analysis it is concluded that enhanced security and privacy; implementing smart sensors; implementation of Intelligent analytics and better collaboration and Networking has supported the organization and other stakeholders in creating better smart city.