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The world has now entered in a new era of Computing, blessed with many prominent technologies including Artificial Intelligence (AI) and Internet of Things (IoT). In an IoT world, sensor enabled objects (things) are connected together via the Internet to participate in performing a particular task mainly by sending and receiving data from one to other. Artificial intelligence empowers agents (machines or devices) to perceive the surrounding environments leading to take calculative decisions, followed by performing efficient actions in order to maximizing the chances of successfully accomplishing a desired task or goal. In this research, we combine both IoT and AI to reduce traffic congestions in a smart city environment. A detailed literature review has been conducted and a simple solution based on AI Algorithm has been proposed. Future directions of the research has also been identified and advocated.