The dawn of 6G technology presents a transformative opportunity to realize the hyper-connected city, characterized by seamless information exchange and intelligent infrastructure. However, achieving this vision requires more than simply increasing bandwidth and connectivity; it demands a shift towards semantic communication, a paradigm that prioritizes the meaning of information. This paper argues that semantic communication, powered by Artificial Intelligence (AI), is an indispensable cornerstone for building truly intelligent and responsive hyper-connected cities. We explore the core framework of semantic communication, examine the specific AI technologies that enable its implementation, and analyze experimental results demonstrating significant improvements in bandwidth efficiency, data recovery, and reduced latency compared to legacy methods. These results, derived from a testbed implementation of a semantic adaptive context lighting system, highlight the potential of AI-powered semantic communication to optimize resource allocation, enhance system resilience, and pave the way for a future where technology seamlessly enhances urban living. Although limited, our testbed results offer a compelling case for semantic communication's future relevance and potential as an enabler for hyper-connected city of the 6G era. Key areas for future research, including scalable AI models, security and privacy protocols, standardized interoperability, and robust real-world deployment and evaluation, are also discussed