The population living in cities continues to grow and leaders are looking to technology such as Artificial Intelligence (AI) to help them solve some of their most pressing issues.
By instrumenting critical systems with connectivity and adding sensors to existing infrastructure, cities can better understand their resource utilization, citizen behavior and service gaps, explains an S&P Global research.
AI and Generative AI (GenAI) have opened a world of possibilities for expanding access to services and enhancing efficiencies. However, S&P Global notice possible new risks.
“As we navigate the transition to smarter cities, it is imperative for policymakers, industry stakeholders and communities to work collaboratively in addressing these challenges and ensuring that technological innovations are deployed ethically and inclusively,” highlights the research.
But AI in smart cities could usher in a new era of urban prosperity and well-being for the next generations.
According to Future Data Stats, the global Artificial Intelligence in Smart Cities Market size was valued at $37.40 billion dollars in 2023 and is projected to expand at a compound annual growth rate (CAGR) of 19.5% during the forecast period, reaching a value of $163.89 billion dollars by 2030.
First Steps
AI is not just a technological advancement; it’s a transformative force for smart cities. Its importance cannot be overstated, as it holds the key to making cities more efficient, sustainable, and responsive to the needs of their residents. As urban landscapes evolve, AI will undoubtedly remain at the forefront, shaping the future of how we live, work, and interact within our cities.
For this reason, the cities interested in becoming Smart Cities are focused on transportation-related use cases, larger-scale Internet of Things (IoT) deployments in favor of building out their connectivity infrastructure or sustainability and safety enhancements.
Artificial Intelligence could also be used to detect patterns, make predictions, unify data streams for all these technology developments, explained S&P Global research.
“AI governance, data quality and employee data literacy are chief considerations to make before procuring and deploying AI applications and a full-scale AI strategy within a city,” detailed S&P Global.
To move forward in the AI implementation, Smart Cities needs to establish clear objectives. The first step could be related to the development of a robust data infrastructure.
Cities need to ensure they have the infrastructure to collect, process, and analyze data from various sources. This includes sensors, cameras, and IoT devices spread across the urban landscape.
Also, governments need to ensure data privacy and security. Cities must implement strong data governance policies to protect citizens' privacy and secure data against breaches. Transparency in data usage is crucial to maintain public trust.
Cities should engage with private companies, academic institutions, and non-profits to leverage their expertise and resources. These partnerships can accelerate the development and deployment of AI solutions.
Focus on scalability and integration is a relevant part of the equation. AI solutions should not be siloed; they must be scalable and easily integrated with existing urban systems. This ensures that as the city grows, the AI systems can adapt and expand accordingly.
Building a skilled workforce is essential. Cities need to train their workforce to manage and maintain AI systems. This includes hiring data scientists and AI specialists and training existing employees.
The goal of the Smart Cities is the benefit of the citizens, and for this reason the governments need to engage the community. Citizens should be at the heart of the AI implementation process. Cities need to involve them through consultations and feedback mechanisms. This ensures that the AI solutions meet the actual needs of the residents.
Finally, the recommendation is to measure and evaluate impact. Cities must continuously measure the impact of AI implementations. This involves setting up metrics and KPIs to assess whether the AI solutions are meeting their intended objectives.
The field of AI is rapidly evolving. Cities must stay informed about the latest developments and be ready to adapt their strategies accordingly.
IA Initiatives in the Americas
Countries have established smart city challenges to spur innovation and have allocated funding to support project establishment and scale, explained S&P Global.
“Who ‘owns’ smart city initiatives varies from city to city and country to country. Whereas some cities may have a smart city director or manager, others may work with a corporate partner to spur projects. Progress of the smart city movement can be measured in the successes of individual cities, such as Barcelona or Hong Kong, or in the increase of connected devices as a whole, extending globally to cities and towns of all sizes,” detailed the research.
According to 451 Research's Voice of the Enterprise: Internet of Things, the OT Perspective, Use Cases and Outcomes 2023, 50% of government respondents selected ensuring public safety as the main driver for their smart city initiatives, followed by improving overall quality of life (44%) and improving city services (42%).
In addition, Gartner predicted that by 2021, 30% of city government service interactions would be fulfilled and/or completed, at least in part, through an AI-powered conversational channel.
But the investment in AI is broader; 66% of 167 cities inquired for the ESI Thoughtlab study are investing heavily in AI and 80% will do so over the next three years. North American cities with 83% and small cities with 74% lead in the use of AI.
Unfortunately, the United Nations Development Programme (UNDP) report explained that initial data on the uptake of AI in industries in Latin America and Caribbean shows that the region is already lagging behind global adoption rates.
While AI is forecasted to contribute up to 5.4 percent of Latin America's GDP by 2030, equivalent to approximately $0.5 trillion, this number falls behind those for North America, poised to gain over 14.5% of its GDP in the same period, according to UNDP data.
“Latina America and Caribbean lower uptake reflects limited public investment in science and technology, insufficient skill levels necessary to embrace AI, and a highly informal economy dominated by small enterprises,” mentioned the international organism.
The UNDP mentioned that to maximize AI’s advantages, strong digital infrastructure, including widespread internet access and reliable digital services, is a pre-condition in the region.
In North America and Latin America, we found several examples of how cities are implementing Artificial Intelligence.
Dallas, the modern north Texas city, has already trialled autonomous vehicles with varying degrees of success.
“Now a new breed of self-driving lorries is being tested between Dallas and Houston in the United States’ state of Texas. The difference? They are trained on generative AI,” highlighted the WEF.
If these gen AI vehicles prove to be safer and more reliable than their predecessors, the potential is there to tackle a number of issues, including supply chain hold-ups, carbon emissions and labor shortages.
Seattle, Washington has a policy that aims to establish requirements that city departments must follow when procuring and utilizing software that falls under the definition of GenAI.
San Jose, California has a guideline setting baseline rules for users while using GenAI for city work.
In addition to usage of the technology being subject to the Public Record Act, the measure sets out principles for using GenAI, addresses copyright and content ownership, and requires users to cite AI when used and to understand the related risks.
Argentina’s capital city launched its chatbot in 2019. “Boti” has evolved alongside generative AI, achieving a record 11 million conversations in January 2022 to become “a preferred channel for citizens,” says the Observatory of Public Sector Innovation.
It served as the official government channel for testing and vaccinations during the pandemic but has now expanded its scope to include services such as bike sharing and social care, explained a World Economic Forum (WEF) document.
