This article explores the relationship between artificial intelligence (AI) and community well-being for local governance. It investigates the potential use of AI to ease societal issues and improve community well-being. This article provides an overview of the impact of AI on community dynamics, smart urban planning, and integrating AI optimization with community well-being. The incorporation of smart applications into urban planning approaches is highlighted as a critical component, demonstrating AI's revolutionary potential for creating sustainable and inclusive landscapes. The main issue is the importance of combining AI optimization with community well-being, with a focus on responsible and ethical AI approaches that benefit the community. This review also goes over emotional AI and its ethical consequences, intellectual freedom in AI ethics, and AI's role in healthcare. This comprehensive analysis offers significant insights for researchers, policymakers, and practitioners looking to shape the ethical and equitable deployment of AI technology for societal benefit.