This study focuses on the implementation of the urban observatory and the role of artificial intelligence (AI) in urban development and management. It explores how AI technology can help reduce the impact of urbanization and improve city planning and management. The study discusses the Indian Urban Observatory as a case study and highlights the importance of involving all stakeholders in the development and management of cities. It also examines the use of modern technologies, such as AI and data analytics, in improving resource utilization and data management in smart cities. The study aims to leverage AI technology to understand city resources and systems and reduce the impact of urbanization.