Cities are evolving towards becoming more efficient, aiming to improve the quality of life of citizens and the efficiency of operations and urban services, as well as respect and preserve economic, social, and environmental aspects. This challenge of designing and developing a new urban scenario, commonly called a smart city, considers innovation, technology, and governance articulated and integrated. A smart city redefines urban governance by developing new approaches to make cities more efficient, humane, and sustainable. The InovaCID (Smart City with Innovation and Sustainability and Artificial Intelligence) project proposes a smart city that innovates, observes the sustainability of its projects, and uses artificial intelligence (AI) as an enabler of its projects aimed at improving citizens' quality of life. Smart cities with artificial intelligence are an innovation that addresses urban development problems and promotes their optimization. The InovaCID project supports the digital transformation of cities, focusing specifically on health, urban development, and energy efficiency. In the InovaCID project, AI allows aspects of urban centers that were previously difficult to deal with, such as the large volume of data, the heterogeneous requirements, and the multiple objectives inherent to an urban governance context, to be met innovatively and efficiently.