The advent of the smart era drives the groundbreaking development of smart devices, which has increased the requirement for the application of energy supply equipment. Although lithium-ion batteries are available for commercial applications, their electrochemical properties and adaptability are still limited by the intrinsic material defects and complex technological innovations. Facing the fourth industrial revolution represented by information technology and artificial intelligence (AI), novel batteries with superior electrochemical properties and outstanding reliability can be constructed based on these disruptive materials and technologies. Importantly, the intelligence concept has been introduced into the design and management of batteries. In this review, we explicitly define and discuss the meaning of "smart batteries" and categorize them into three generations based on the intelligent features of their functional characteristics. Meanwhile, the action mechanisms and application principles of smart batteries have been elaborated to provide a comprehensive understanding. Moreover, we propose feasible opinions to the problems faced in the practical development of smart batteries to promote the sustainability of batteries.