This study explores the transformative potential of Artificial Intelligence (AI) in enhancing community engagement within urban regeneration projects. AI’s capacity to process vast datasets, analyze trends, and predict outcomes is revolutionizing urban planning by fostering more inclusive, adaptive, and responsive urban ecosystems. Through a bibliometric literature review, we examined existing research on AI’s role in democratizing decision-making by aggregating, analyzing, and interpreting residents’ opinions and feedback. The findings demonstrate that AI effectively addresses critical urban challenges, including traffic congestion, environmental degradation, resource allocation, and public safety, thereby enabling smarter, data-driven solutions. Moreover, AI’s ability to identify community needs ensures greater resident participation and more equitable urban development. However, significant challenges remain, particularly concerning data privacy, algorithm transparency, and ethical implications. Addressing these issues requires robust policy frameworks, adaptive governance models, and clear regulatory measures to mitigate risks and promote fairness. In conclusion, while challenges exist, AI holds immense potential to contribute to the development of smarter, more resilient, sustainable, and inclusive urban environments, where community voices are prioritized and integrated effectively.