The goal of this study is to investigate the direct and indirect relationships that exist between artificial intelligence (AI), social innovation (SI), and smart decision-making (SDM). This study used a survey design and collected cross-sectional data from South Korea and Pakistan using survey questionnaires. Four hundred sixty respondents from the public and private sectors were obtained and empirically analyzed using SPSS multiple regression. The study discovered a strong and positive mediating effect of SI between the relationship of AI and SDM, as predicted. Previous researchers have investigated some of the factors that influence the decision-making process. This study adds to the social science literature by examining the impact of a mediating factor on decision-making. The findings of this study will contribute to the local government in building smart cities such that the factor of social innovations should be involved in the decision-making process because smart decision-making would share such collected data with entrepreneurs, businesses, and industries and would benefit society and all relevant stakeholders, including such social innovators.