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This project explores the integration of Artificial Intelligence (AI) in urban planning to enhance data-driven decision-making, spatial analysis, and public service delivery. It examines global and Indian initiatives, evaluates current AI applications, and identifies risks such as bias, exclusion, and accountability gaps. A prototype AI tool for park suitability was developed using machine learning techniques to demonstrate real-world application. The study emphasizes the need for inclusive data practices and participatory frameworks to ensure ethical and effective AI adoption in Indian cities.