| Summary: | This review investigates the influence of European Union regulations on the adoption of artificial intelligence in smart city solutions, with a structured emphasis on regulatory barriers, technological challenges, and societal benefits. It offers a comprehensive analysis of the legal frameworks in effect by 2025, including the Artificial Intelligence Act, General Data Protection Regulation, Data Act, and sector-specific directives governing mobility, energy, and surveillance. This study critically assesses how these regulations affect the deployment of AI systems across urban domains such as traffic optimization, public safety, waste management, and energy efficiency. A comparative analysis of regulatory environments in the United States and China reveals differing governance models and their implications for innovation, safety, citizen trust, and international competitiveness. The review concludes that although the European Union’s focus on ethics and accountability establishes a solid basis for trustworthy artificial intelligence, the complexity and associated compliance costs create substantial barriers to adoption. It offers recommendations for policymakers, municipal authorities, and technology developers to align regulatory compliance with effective innovation in the context of urban digital transformation.
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