Tech
AI-Powered Cities: Shaping the Future of Urban Living
The integration of artificial intelligence (AI) into city operations is not a new concept. Across the globe, urban centres are leveraging AI to enhance everything from public services to infrastructure. As this technology continues to expand, cities now have the opportunity to reflect on the most effective applications of AI and learn from one another to maximise its potential.
A recently published report, AI-Powered Cities of the Future, examines how 250 cities across 78 countries are adopting AI-driven solutions. The findings reveal that the more extensively a city employs AI, the better equipped it is to address pressing urban challenges such as sustainability, infrastructure management, public health, and security.
AI’s Impact on Urban Development
According to the report, over half of the cities surveyed are actively using AI, while another 35% are in the process of piloting or planning AI implementation. The top ten most effective AI applications, as ranked by cities, include:
- Traffic management
- Public safety
- Energy management
- Customer service
- Predictive maintenance
- Waste management
- Decision-making and analysis
- Urban planning
- Cybersecurity
- Fraud detection
These applications demonstrate AI’s ability to streamline city operations and improve efficiency. However, the question remains: Is AI making a meaningful impact on the most challenging urban issues?
The cities leading in AI implementation provide valuable insights. These urban centres utilise both traditional AI and generative AI (GenAI), incorporate AI across various domains, prioritise responsible AI usage, and establish strong foundations for future AI-driven advancements.
AI Leaders and Their Advantages
Among the 250 cities studied, 20% were identified as “AI leaders.” These cities have demonstrated greater preparedness for urban challenges, with 78% stating they are well-equipped to tackle issues such as climate change, public health crises, and infrastructure demands. In contrast, only 63% of less AI-mature cities express the same level of confidence.
Moreover, AI-leading cities feel nearly three times more prepared to handle challenges such as geopolitical instability, supply chain disruptions, and socioeconomic shifts. They also exhibit greater resilience in critical areas such as public safety, infrastructure management, and technology integration.
Lessons from the AI Pioneers
Cities looking to enhance their AI maturity can adopt best practices from these AI leaders. The report highlights several key strategies contributing to their success:
1. Commitment from Leadership
A well-defined vision and strategic plan for AI development, supported by appropriate funding, is crucial. Many AI leaders initiate their AI strategies at the national level and implement them systematically within cities.
2. Modern Data and IT Infrastructure
A cloud-based IT ecosystem is fundamental to AI success. Leading cities consolidate data management systems to create a unified, real-time source of information accessible to key stakeholders.
3. Developing AI Talent
Cities that prioritise AI workforce development by training officials, employees, and residents create a strong foundation for future AI advancements. Collaborations with universities and AI bootcamps further ensure a steady pipeline of skilled professionals.
4. Fostering an AI Innovation Ecosystem
Successful AI cities actively engage with technology experts from academia, research institutions, and private enterprises. Hosting collaborative meetings with AI vendors helps cities implement cost-effective and cohesive AI strategies.
5. Transforming Urban Services with AI
From predictive maintenance for public infrastructure to AI-driven self-service citizen portals, AI leaders embrace innovative applications. They also explore advanced AI technologies such as agentic AI, which enables systems to make independent decisions, and synthetic AI-generated data to address privacy concerns.
6. Combining AI with Other Technologies
Leading cities integrate AI with complementary technologies like cloud computing, blockchain for secure transactions, the Internet of Things (IoT) for real-time data collection, and digital twins for urban planning and optimisation.
7. Prioritizing Data Security and Privacy
As AI requires extensive data utilisation, AI leaders implement robust cybersecurity frameworks to mitigate risks. They also use AI-driven threat detection systems to counter cyberattacks in real time.
Harnessing AI for the Future
AI-powered cities are redefining urban living by not only improving existing processes but also unlocking new possibilities. With generative AI, the capacity for data-driven analysis and problem-solving is set to expand further. Currently, 87% of cities are either planning, piloting, or already deploying GenAI in their operations.
The emergence of agentic AI presents another significant leap forward. These AI systems can autonomously analyse data and make informed decisions without human intervention, further streamlining urban management.
However, to fully harness AI’s potential, cities must align technology deployment with their overarching missions. Human oversight will continue to play a crucial role in ensuring AI’s responsible use, maintaining ethical standards, and fostering public trust. Balancing automation with human involvement is essential in driving meaningful and sustainable AI advancements.
As cities around the world embrace AI, those leading the charge demonstrate the vast potential of this technology in addressing modern urban challenges. By committing to strategic AI adoption, building robust IT infrastructures, fostering AI talent, and prioritising security, cities can strengthen their resilience and readiness for the future.
While AI implementation presents challenges, the rewards—enhanced urban efficiency, stronger public services, and greater adaptability to evolving risks—make the investment worthwhile. By learning from AI leaders, cities can unlock the full benefits of AI and create smarter, more connected, and sustainable urban environments for generations to come.